Oil prices held steady near a five-month low amid mixed signals regarding US President Donald Trump's push to halt India's purchases of Russian crude.

West Texas Intermediate was little changed and traded near $58 per barrel after earlier rising as much as 1.4%. Indian refiners said they expect to reduce—not halt—purchases of Russian crude, a move that could strain global supplies, following Trump's statement that the South Asian nation would halt all purchases. However, the market is still awaiting clarification from the New Delhi government, which has neither officially confirmed nor denied Trump's statement.

This development has dampened the earlier rally, with traders recently confident that India's halt to Moscow's crude imports is not imminent. The South Asian nation, along with its neighbor China, has been taking advantage of discounted Russian supplies through the Group of Seven (G7) price cap mechanism designed to maintain oil flows while limiting Moscow's access to funds for its war in Ukraine.

However, senior US officials have accused Indian businesses of profiteering, and the purchases have become a sticking point as New Delhi seeks to accelerate trade talks. Its trade minister said Wednesday that his country has the capacity to buy an additional $15 billion worth of oil from the US.

Meanwhile, Britain imposed sanctions on Russia's largest oil producer, two Chinese energy companies, and Indian refiner Nayara Energy Ltd., for their handling of Russian fuel. Western countries are pressuring Russia's energy sector in an effort to curb the flow of petrodollars to the Kremlin and limit President Vladimir Putin's ability to finance the war in Ukraine.

Crude oil prices have fallen this month as escalating trade tensions between the US and China fuel demand concerns in the two largest crude consumers, and as major trading firms say a long-anticipated supply glut is already emerging.

Meanwhile, US government reports paint a mixed picture of the domestic oil market. Although refinery operations declined in nearly all regions, bringing national figures to their lowest seasonal levels since 2021, crude oil stocks at the Cushing, Oklahoma, production hub fell to their lowest level since July, and product inventories declined. (alg)

Source: Bloomberg