Trump’s Statement Sparks Oil Price Surge: Key Announcement Shakes the Market
Global oil prices experienced renewed volatility following a significant statement by former U.S.
President Donald Trump, which had a profound impact on the energy market.
He announced that Indian Prime Minister Narendra Modi promised to cease Russian oil imports, prompting a sharp rebound in oil prices, approaching a five-month high.
According to Bloomberg, the West Texas Intermediate (WTI) crude rose to nearly $59 per barrel after losing about 2% over the previous two sessions.
Meanwhile, Brent crude closed just below $62 per barrel.
Trump did not specify exact timelines for India’s withdrawal from oil purchases but emphasized that New Delhi could not implement this immediately due to procedural complexities.
India, alongside China, has actively exploited discounted Russian oil, sold within the G7 price cap aimed at limiting Moscow’s profits while ensuring stable supplies to global markets.
The U.S.
has repeatedly criticized Indian companies for earning excessive profits from trade with Russia.
Energy procurement remains a major obstacle in negotiations between Washington and New Delhi regarding a new trade agreement.
India’s trade minister indicated that the country could buy an additional $15 billion worth of American oil.
Despite the price rise, oil prices generally declined this week due to escalating trade tensions between the U.S.
and China—the world’s two largest oil consumers.
Furthermore, major trading firms reported a surplus of supply, which market observers expected in the second half of the year.
Trump declared that the U.S.
is in a trade war with China, despite Treasury Secretary Scott Bessent’s proposal to temporarily suspend high tariffs on Chinese goods to resolve conflicts over critical minerals.
Additionally, industry reports revealed that U.S.
oil inventories increased by 7.4 million barrels last week; if confirmed by official data to be released Thursday, it would mark the largest weekly stock increase since July.