Oil prices edge higher on US adviser comments on India buying Russian crude

LONDON: Oil prices edged up on Monday after White House trade adviser Peter Navarro said India’s purchases of Russian crude were funding Moscow’s war in Ukraine and had to stop.

Traders were also watching for clues from a meeting later in the day between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy as they attempt to reach a peace deal to end Europe’s deadliest war in 80 years.

Brent crude futures rose 20 cents, or 0.3%, to $66.05 a barrel by 1208 GMT. U.S. West Texas Intermediate crude was up 28 cents, or 0.45%, at $63.08.

Navarro’s comments revived concerns about supply flows.

“India acts as a global clearing house for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” Navarro said.

The statement triggered some buying interest in the market, said SEB analyst Ole Hvalbye.

Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova, said: “The U.S. adviser’s sharp words on India’s Russian crude imports, paired with postponed trade talks, revive concerns that energy flows remain hostage to trade and diplomatic frictions, even as peace prospects in Ukraine brighten.”

Trump will meet Zelenskiy at 1715 GMT and then with other European leaders at 1900 GMT.

The U.S. President told Ukraine on Monday to give up hopes of getting back annexed Crimea or joining NATO, emerging more aligned with Moscow on seeking a peace deal instead of a ceasefire first after his meeting with Russian President Vladimir Putin in Alaska on Friday.

“I don’t believe the oil market has priced in a full peace dividend that potentially could see prices of crude and EU gas suffer further setbacks,” said Saxo Bank commodities strategist Ole Hansen.

Speculators in the week to August 12 held the first combined net short position in WTI (CME & ICE), leaving prices exposed to any upside surprises, Hansen added.

Investors are also watching for clues on U.S. interest rates from Federal Reserve Chairman Jerome Powell’s comments at this week’s Jackson Hole meeting.