Twisted knee, having stood in oil (8)
I believe the answer is:
kerosene
'oil' is the definition.
(thesaurus)
'twisted knee having stood' is the wordplay.
'twisted' indicates an anagram.
'having' indicates putting letters inside.
'stood' becomes 'rose' (I've seen this before).
'knee' anagrammed gives 'kene'.
'kene' going around 'rose' is 'KEROSENE'.
'in' is the link.
(Other definitions for kerosene that I've seen before include "Sore knee (anag.)" , "No seeker for American fuel oil" , "Paraffin oil (E, not I)" , "Combustible" , "Oil used as fuel in lamps and heaters" .)