Oil Prices Climb as U.S. Criticizes India’s Russian Crude Purchases
Global oil prices advanced on Monday after the U.S. raised concerns over India’s continued purchases of Russian crude, which Washington argues are indirectly financing Moscow’s war in Ukraine.
Brent crude futures gained 30 cents, or 0.46%, to trade at $66.15 per barrel this morning, while U.S. West Texas Intermediate (WTI) rose by 38 cents, or 0.61%, to $63.18.
White House trade adviser Peter Navarro sharpened focus on India’s role in the oil market, stating: “India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs.”
His comments triggered renewed buying activity, according to SEB analyst Ole Hvalbye. Priyanka Sachdeva, senior analyst at Phillip Nova, added: “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.”
Attention also turned to a scheduled meeting later in the day between U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy, where peace efforts to end the conflict were expected to dominate discussions. Trump was set to meet Zelenskiy at 17:15 GMT before joining European leaders at 19:00 GMT.
Speaking ahead of the meeting, Trump advised Kyiv to abandon hopes of reclaiming Crimea or joining NATO, aligning more closely with Moscow following his talks with Russian President Vladimir Putin in Alaska, as reported by Reuters.
Saxo Bank’s head of commodity strategy, Ole Hansen, noted that the market had yet to fully account for the potential impact of peace: “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.”
Meanwhile, speculators turned bearish on oil, holding a combined net short position in WTI (CME & ICE) for the first time as of August 12, leaving the market vulnerable to any upward surprises. Investors were also watching for signals from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole meeting on how interest rate policy might affect global markets.
