Oil prices rose after a report indicated the United States and India were close to a trade deal that could lead to New Delhi gradually reducing imports of Russian crude, boosting demand for alternative fuels. Brent crude traded above $62 a barrel, up 1.9%, while West Texas Intermediate crude rose, heading to $59. The expected agreement could also lead to a reduction in customs duties on Indian exports, according to what was published by the Mint newspaper, citing three people familiar with the matter who were not identified. Data from the American Petroleum Institute showed that US oil inventories fell by 3 million barrels last week, while fuel inventories, including gasoline, also declined. Official government data is expected to be released later on Wednesday. Meanwhile, for the second week in a row, Trump repeated his claim that he had spoken with Indian Prime Minister Narendra Modi about reducing India’s imports of Russian oil. The Indian embassy did not respond to a request for comment, while Indian refining companies have previously indicated that they intend to reduce purchases without stopping them altogether. Also Read: Trump: India will reduce its purchases of Russian oil. The global surplus supply is depressing prices. Oil is still on course for a third straight monthly loss as indications of a surplus in the market put pressure on prices, although it provided an opportunity for the Trump administration to buy crude for the strategic reserve. The United States plans to buy 1 million barrels for delivery in December and January. “There’s a lot of supply,” Natasha Kaneva, head of global commodity strategy at JP Morgan Chase, said in an interview with Bloomberg TV. “The supply is growing two and a half times faster than the demand.” *Prices are adjusted to reflect market movements
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