Oil prices stabilized on Thursday as traders assessed the potential impact of India reducing its intake of Russian crude oil.
The development followed reports that New Delhi may gradually phase out imports from Moscow, a move that could alter global crude flows and influence near-term market balance.
Brent crude oil, against which Nigerian crude oil is priced, gained 0.87 percent to trade at $62.45 per barrel, while U.S. West Texas Intermediate rose 0.96 percent to $58.83 per barrel.
Both benchmarks recovered modestly after touching multi-month lows earlier in the week on renewed U.S.-China trade concerns.
India is Russia’s single largest crude customer, accounting for roughly one-third of its total oil imports. A potential reduction in Russian barrels would redirect Asian demand toward Middle Eastern and African suppliers, tightening competition for available cargoes.
Market analysts said the shift could remove discounted Russian grades from the spot market and lend short-term support to prices.
Sources familiar with India’s plans indicated that refiners are preparing for a gradual adjustment rather than an immediate halt. The policy review follows diplomatic consultations between New Delhi and Washington, where discussions centered on aligning energy trade with broader geopolitical considerations.
Russian authorities have expressed confidence that energy cooperation with India will continue despite political pressure. Indian officials, however, reiterated that the country’s priority remains maintaining price stability and securing consistent supply. No official commitment to end purchases has been announced.
Recent operational challenges within Russia have added to supply-side risks. Drone attacks on key refineries, including the Saratov and Ufaneftekhim plants, have disrupted output and prompted Moscow to delay scheduled maintenance to keep production steady. These incidents have constrained exports and raised uncertainty about Russia’s capacity to meet current demand levels.
In a separate development, the United Kingdom imposed new sanctions on Rosneft, Lukoil, and a network of shipping and refining entities linked to Russia’s oil trade.
The measures target 44 tankers and several oil terminals associated with the shadow fleet transporting sanctioned crude.
The sanctions are expected to increase logistical bottlenecks for Russian exports and limit access to international shipping and insurance markets.
Analysts at PVM noted that the reduced availability of Russian crude could provide a price floor for Brent around $58.40 per barrel, the year’s previous low. They added that further downside risk remains limited unless global demand conditions deteriorate sharply.
The U.S. Treasury has also expanded diplomatic outreach to Asian partners, urging Japan and other allies to scale back energy imports from Russia.
Although Japan’s exposure to Russian crude remains marginal, the policy signals Washington’s broader effort to constrain Moscow’s revenue streams.
With multiple supply disruptions emerging simultaneously and India’s position under review, traders are recalibrating expectations for the final quarter of the year.
Market participants anticipate that any significant reduction in Russian exports to India would tighten global balances and sustain prices above the current technical support zone.
At the time of reporting, both Brent and WTI futures remained within narrow intraday ranges as participants awaited official clarification on India’s import policy and Russia’s refinery recovery timeline.
