Oil prices rose on Monday after White House trade adviser Peter Navarro said India’s purchases of Russian crude were funding Moscow’s war in Ukraine and must stop.
Brent crude futures gained 30 cents, or 0.46%, to $66.15 a barrel by 0629 GMT, while U.S. West Texas Intermediate (WTI) crude was up 39 cents, or 0.62%, at $63.19 a barrel.
Navarro, in an opinion piece published in the Financial Times, argued that if India wants to be treated as a strategic partner of the United States, it must begin to act like one.
“India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs,” Navarro wrote.
Analysts said the market’s swift rebound after Navarro’s comments underlined how fragile sentiment remains.
Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova, noted:
Any sign of Washington tightening its stance on India’s Russian oil purchases reintroduces a risk premium. The U.S. adviser’s sharp words, paired with postponed trade talks, revive concerns that energy flows remain hostage to trade and diplomatic frictions, even as peace prospects in Ukraine brighten.”
Earlier in Asian trading, oil prices had dipped following U.S. President Donald Trump’s meeting with Russian President Vladimir Putin in Alaska on Friday. The two leaders appeared more aligned on seeking a peace deal rather than a ceasefire first.
Trump is scheduled to meet Ukrainian President Volodymyr Zelenskiy and European leaders on Monday as he pushes for a quick peace agreement to end Europe’s deadliest conflict in 80 years.
Helima Croft, an analyst at RBC Capital, said in a note:
“The status quo remains largely intact for now. Moscow is unlikely to walk back territorial demands, while Ukraine and some European leaders would resist a land-for-peace deal.”
On Friday, Trump also said he did not immediately need to impose retaliatory tariffs on countries such as China for buying Russian oil, but might have to “in two or three weeks,” easing concerns about supply disruptions.
China, the world’s biggest oil importer, remains the largest buyer of Russian crude, followed by India.
Meanwhile, investors are awaiting comments from U.S. Federal Reserve Chairman Jerome Powell at this week’s Jackson Hole meeting for clues on the path of interest rate cuts that could further boost equities.
