Khaberni - Oil prices rose in early Asian trading on Monday as investors anticipated escalating tensions in the Middle East that might affect supplies, while a major hurdle remains in peace talks between Russia and Ukraine.
Brent crude futures rose by 57 cents or 0.94% to $61.21 per barrel, while West Texas Intermediate crude in the U.S. rose by 54 cents or 0.95% to $57.28.
Both benchmark crudes fell by more than 2% on Friday as investors weighed a looming global supply glut against the potential for a peace agreement in Ukraine ahead of weekend talks between Ukrainian President Volodymyr Zelensky and U.S. President Donald Trump.
Yang An, an analyst at Haitong Futures, said, "The continuation of geopolitical tensions is the main reason for the price rise, as Russia and Ukraine continued to target each other's energy infrastructure over the weekend."
Yang added, "The Middle East has also seen disruptions recently with Saudi Arabia conducting air strikes on Yemen and Iran stating that it is in 'total war' with the United States, Europe, and Israel."
He continued, "This may be what is driving market concerns about possible supply disruptions."
U.S. President Donald Trump said on Sunday that he and Ukrainian President Volodymyr Zelensky "are getting much closer, and maybe very close," to reaching a deal to end the war in Ukraine, even though the leaders acknowledge that some thorny details are still unresolved.
Trump said it would become clear "within a few weeks" whether the negotiations to end the war will succeed or not.
Crude oil is expected to trade between $55 and $60 as U.S. actions against Venezuelan oil shipments and any potential repercussions from the U.S. military strike against "terrorist ISIS" targets in Nigeria, which produces about 1.5 million barrels per day, are awaited.
