Oil prices advanced during Monday's Asian trade as investors weighed ongoing geopolitical tensions in the Middle East that could disrupt supply, while uncertainty persisted around efforts to end the war in Ukraine.
By 2:50 pm AEDT (3:50 am GMT), Brent crude futures were up 56 cents, or 0.9%, at $61.20 per barrel. U.S. West Texas Intermediate crude gained 60 cents, or 1.1%, to $57.34 per barrel.
The gains followed sharp losses late last week, with both benchmarks sliding more than 2% on Friday amid concerns over a looming global supply glut and optimism that progress could be made towards a peace agreement between Russia and Ukraine.
Meanwhile, Yang An, a China-based analyst at Haitong Futures was quoted in this Reuters story as saying, "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."
U.S. President Donald Trump said on Sunday that negotiations with Ukrainian President Volodymyr Zelenskyy were advancing, though key issues remain unresolved.
Trump said he and Zelenskyy were “getting a lot closer, maybe very close” to an agreement to end the war, but cautioned that several complex details still needed to be worked through.
The comments came during a joint press conference after the two leaders met at Trump’s Mar-a-Lago resort in Florida.
Trump added that it would become clear “in a few weeks” whether negotiations would ultimately succeed.
Market participants are also monitoring supply-side risks beyond Eastern Europe. Analysts noted that U.S. crude prices are expected to trade within a $55–$60 range, with attention focused on Washington’s enforcement actions against Venezuelan oil shipments and any fallout from a recent U.S. military strike against ISIS targets in Nigeria, which produces around 1.5 million barrels per day.
