Oil Prices Inch Up Amid Draw in U.S. Stockpiles and Geopolitical Ripples

Highlights:

• Oil prices rose modestly after U.S. crude inventories fell by around 3 million barrels, marking the first decline in four weeks, according to data from the American Petroleum Institute (API).
   
• Brent crude traded above US $61 a barrel, while West Texas Intermediate (WTI) hovered near US $58 at the time of writing, as tightening U.S. supply supported market sentiment.
   
• President Donald Trump reiterated that India would scale back purchases of Russian oil, adding a fresh geopolitical dimension to global energy trade amid ongoing supply concerns.

At the time of writing, crude oil prices have edged higher as fresh data from the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) suggest a tightening in U.S. inventories, while political signals from the Donald Trump administration hint that India may reduce purchases of Russian crude.

Inventory Pull-Back Adds Up

Crude stocks in the U.S. registered a draw of around 3 million barrels for the latest week, according to API‐cited sources. This comes after similar draws in recent weeks and adds to a sense of supply tightening. Meanwhile, gasoline and distillate inventories also showed falls, reinforcing bullish undertones. Benchmarks responded: Brent crude climbed above US $61 a barrel, while U.S. West Texas

Intermediate approached US $58.

Diplomatic Undercurrents: India, Russia and the U.S.

On the geopolitical front, President Trump reiterated that India would trim purchases of Russian energy — a move that would align New Delhi with U.S. pressure on Moscow. Sources from the White House suggest that India has already committed to cutting imports by as much as 50 per cent — though Indian officials say such shifts would only be visible from December.

Caution: Oversupply Risks Remain

Despite the uptick, the market faces headwinds. Oil is still on track for a third consecutive monthly loss as signs of a global surplus linger. Strategic reserves purchases and drawdowns in U.S. inventories may provide near-term support, but structural overflow in global supply chains remains a constraint.

Looking Ahead

With inventories showing signs of drawdowns and geopolitical levers increasingly in play, market watchers will closely follow whether the draw trend continues and how India’s stance on Russian oil evolves. The “at the time of writing” context remains vital: prices may remain volatile as both supply fundamentals and policy signals shift.

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