Oil Prices Surge in Early Trading: Insights and Outlook

Oil prices jumped nearly 1% in early trading Thursday after hitting their lowest levels since early May, with both major crude benchmarks recovering from recent losses amid ongoing concerns about global supply disruptions.

By 0046 GMT, Brent crude futures climbed 57 cents, or 0.9%, to $62.48 per barrel. West Texas Intermediate futures gained 54 cents, also up 0.9%, to $58.81 per barrel.

The bounce comes after both oil benchmarks touched their lowest point since early May during the previous session. Markets have been volatile as traders weigh supply concerns against demand worries from major consuming nations.

Trump said Wednesday that India would stop buying Russian oil, a statement that could reshape global oil flows if implemented. India has become one of Russia's biggest oil customers since Western sanctions began, often purchasing discounted crude that other buyers avoid.

Any shift in India's purchasing patterns would force Russian oil to find new buyers, potentially at even steeper discounts. This could tighten supply for other crude grades that India might buy instead, creating ripple effects across global markets.

Investors are waiting for the weekly U.S. inventory data from the Energy Information Administration later today. These numbers often move oil prices as they show whether American fuel demand is growing or shrinking. Recent inventory reports have painted a mixed picture of U.S. energy consumption.

The oil market has been caught between conflicting signals. Supply disruptions and geopolitical tensions typically push prices higher, but economic uncertainty in major economies has traders worried about future demand.