Traders were also watching for clues from a meeting later in the day between US President Donald Trump and Ukrainian President Volodymyr Zelenskyy as they attempt to come to a peace deal

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 should stop.

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

Brent crude futures gained 0.46 per cent or 30 cents to $66.15 a barrel by 1005 GMT, while US West Texas Intermediate crude was up 38 cents, or 0.61 per cent, to $63.18 a barrel.

White House trade adviser Peter Navarro’s comments around India’s purchases of Russian crude funding Moscow’s war in Ukraine revived some concerns about supply flows.

India acts as a global clearinghouse for Russian oil, converting embargoed crude into high-value exports while giving Moscow the dollars it needs, the trade adviser said.

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

The US 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, said Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova.

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’s head of commodity strategy, Ole Hansen.

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