Crude oil prices rose nearly 1 percent on Thursday following remarks from U.S. President Donald Trump. Trump stated that Indian Prime Minister Narendra Modi had assured him that India would cease purchasing Russian crude oil. This announcement unsettled global energy markets.
However, there has been no confirmation from the Indian government regarding Trump’s statements.
The potential shift away from Russian oil exports to India could lead to tighter supply and further increase prices. Indian refiners might face higher costs if compelled to switch to more expensive oil grades from the Middle East or the U.S.
If oil prices continue to rise, it could exacerbate inflationary pressures within India, potentially affecting broader equity market sentiment. Sectors sensitive to input costs, such as aviation, logistics, and chemicals, are likely to feel the impact, while energy producers might draw short-term investor interest.
In terms of Indian energy stocks, investors may encounter differing effects due to increasing oil prices. Upstream companies may benefit from higher crude prices, whereas refiners could experience margin compression.
Public-sector companies, including Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, may face short-term challenges due to alternative supply pressures. Meanwhile, the effects on midstream and infrastructure companies may vary.
Published on October 16, 2025.
