UPDATE 3-Oil prices climb after US adviser says India’s Russian crude buying has to stop

US adviser says if India wants to be a US strategic
partner, it
has to act like one

Trump-Putin meeting yielded no deal on Ukraine war

Outline emerges of Putin’s offer to end his Ukraine war

Zelensky, European leaders to meet Trump on Monday

(Updates paragraph 1, prices in paragraph 2, and adds quotes in
paragraphs 3 to 6)

By Florence Tan and Sam Li

SINGAPORE, Aug 18 (Reuters) – 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 had to stop.

Brent crude futures rose 30 cents, or 0.46%, to
$66.15 a barrel by 0629 GMT while U.S. West Texas Intermediate
crude was at $63.19 a barrel, up 39 cents, or 0.62%.

Navarro said in an opinion piece published in the Financial
Times that if India wants to be treated as a strategic partner
of the United States, it needs to start acting 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 said.

The market’s swift rebound after Navarro’s comments
highlights how fragile sentiment is. Any sign of Washington
tightening its stance on India’s Russian oil purchases
reintroduces a risk premium, said Priyanka Sachdeva, senior
market analyst at brokerage Phillip Nova.

“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,” Priyanka added.

Oil prices fell during early Asia trading after U.S.
President Donald Trump met Russian President Vladimir Putin in
Alaska on Friday and emerged more aligned with Moscow on seeking
a peace deal instead of a ceasefire first.

Trump will meet Ukrainian President Volodymyr Zelenskiy and
European leaders on Monday as the U.S. president presses Ukraine
to accept a quick peace deal to end Europe’s deadliest war in 80
years.

“The status quo remains largely intact for now,” RBC Capital
analyst Helima Croft said in a note, adding that Moscow would
not walk back territorial demands while Ukraine and some
European leaders would balk at the land-for-peace deal.

On Friday, Trump said he did not immediately need to
consider retaliatory tariffs on countries such as China for
buying Russian oil but might have to “in two or three weeks”,
cooling concerns about a disruption in Russian supply.

China, the world’s biggest oil importer, is the largest
buyer of Russian oil, followed by India.

Investors are also watching for clues from Federal Reserve
Chairman Jerome Powell’s comments at this week’s Jackson Hole
meeting regarding the path of interest rate cuts that could
boost stocks to further records.

“It’s likely he will remain noncommittal and data-dependent,
especially with one more payroll and Consumer Price Index (CPI)
report before the September 17 FOMC meeting,” IG market analyst
Tony Sycamore said in a note.
(Reporting by Florence Tan in Singapore and Sam Li in Beijing;
Editing by Christian Schmollinger, Clarence Fernandez and Emelia
Sithole-Matarise)