Oil Prices Rise Nearly 2% Amid Hopes for US-India Trade Deal

Post by : Saif Nasser

Oil prices rose for the second straight day on Wednesday, gaining almost 2% as hopes grew that the United States and India were close to signing a new trade deal. The agreement could help lift global oil demand and ease trade tensions.

Brent crude futures climbed by 96 cents, or 1.6%, to $62.28 a barrel, while U.S. West Texas Intermediate (WTI) crude futures rose by 95 cents, or 1.7%, to $58.19. Analysts said the rise came after reports suggested that India might reduce its oil purchases from Russia, which could increase demand for oil from other countries such as the United States and the Middle East.

U.S. President Donald Trump said he had spoken with Indian Prime Minister Narendra Modi on Tuesday. According to Trump, Modi agreed that India would start limiting oil imports from Russia. India’s Mint newspaper reported that the two nations were close to finalizing a trade agreement that would lower U.S. tariffs on Indian goods from 50% to about 15-16%.

Investors also looked to progress in U.S.-China trade talks, as officials from both countries were set to meet this week in Malaysia. Trump had earlier said he hoped to reach a fair deal with Chinese President Xi Jinping, though he later said the meeting might not happen, adding uncertainty to global markets.

Another factor that supported oil prices was the news that a planned summit between Trump and Russian President Vladimir Putin had been postponed. This delay raised fresh concerns about future cooperation between the two energy powers. Western nations have also been urging Asian buyers to cut their imports of Russian oil, which added to market worries about supply.

In the United States, oil stocks fell last week, which also pushed prices higher. Market sources cited data from the American Petroleum Institute showing a drop in crude, gasoline, and distillate inventories. The U.S. Department of Energy said it plans to buy one million barrels of oil for the Strategic Petroleum Reserve to rebuild supplies that were used earlier this year.

Experts said oil prices could remain unstable in the coming weeks due to economic slowdowns in major countries and political uncertainty. However, if trade talks between the U.S., India, and China make progress, the global oil market may see more stability.