Oil prices traded lower during Monday's Asian session, easing from five-month highs touched in the previous week following recent U.S. sanctions targeting Russia's energy sector amid the ongoing Ukraine conflict.
By 2:05 pm AEDT (3:05 am GMT) Brent crude futures lost $0.16 or 0.2%, to $80.63 per barrel. U.S. West Texas Intermediate (WTI) crude, nearing its contract expiry on Tuesday, was steady at $77.85 per barrel, while the more active March contract dipped $0.10 or 0.1% $77.29 per barrel.
Both benchmarks posted over 1% gains last week, marking a fourth consecutive weekly rise. The sanctions imposed by the Biden administration targeted more than 100 tankers and two Russian oil producers, disrupting supply chains, triggering a surge in demand for prompt oil cargoes from major buyers like China and India, alongside a global scramble for ship availability.
Meanwhile, dealers handling Russian and Iranian oil sought unsanctioned tankers to maintain supply routes.
However, easing geopolitical tensions in the Middle East tempered oil price gains. A ceasefire between Hamas and Israel on Sunday facilitated an exchange of hostages and prisoners, marking a potential end to 15 months of conflict.