Oil prices rose on Monday as investors weighed Middle East tensions that could disrupt supply, while a major hurdle remains in the Russia–Ukraine peace talks.
Brent crude futures rose 56 cents, or 0.92%, to $61.20 per barrel at 0236 GMT, while U.S. West Texas Intermediate crude was up 51 cents, or 0.9%, to $57.25.
Both benchmark prices fell more than 2% on Friday as investors weighed a looming global supply glut and the possibility of a Ukraine peace deal ahead of weekend talks between Ukrainian President Volodymyr Zelenskiy and U.S. President Donald Trump.
“The main reason prices are rising is that geopolitical tensions remain elevated, as Russia and Ukraine continued striking each other’s energy infrastructure over the weekend,” said Yang An, a China-based analyst at Haitong Futures.
“The Middle East has also been unsettled recently, with Saudi air strikes in Yemen and Iran saying the country is in a ‘full-scale war’ with the U.S., Europe, and Israel. This may be what’s driving market concerns about potential supply disruptions,” Yang added.
U.S. President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelenskiy were “getting a lot closer, maybe very close” to an agreement to end the war in Ukraine, though both leaders acknowledged that some of the thorniest details remained unresolved.
The two leaders spoke at a joint press conference late Sunday afternoon after meeting at Trump’s Mar-a-Lago resort in Florida. Trump said it will be clear “in a few weeks” whether negotiations to end the war will succeed.
While the peace talks were positive, there was no breakthrough and a significant hurdle remained in terms of territorial control over the Donbas region, IG analyst Tony Sycamore said.
WTI is expected to trade within a $55-$60 range with an eye also on U.S. enforcement actions against Venezuelan oil shipments and any fallout from the U.S. military strike against ISIS targets in Nigeria, which produces about 1.5 million barrels per day, Sycamore said in a note.
(Reporting by Sam Li and Ryan Woo in Beijing; Editing by Raju Gopalakrishnan and Thomas Derpinghaus)