Oil prices retreated on Monday following 6% gains last week, but remained near two-week highs as geopolitical tensions grew between Western powers and major oil producers Russia and Iran, raising risks of supply disruption.
"Oil prices are starting the new week with some slight cool-off as market participants await more cues from geopolitical developments and the Fed's policy outlook to set the tone," said Yeap Jun Rong, market strategist at IG.
"Tensions between Ukraine and Russia have edged up a notch lately, leading to some pricing for the risks of a wider escalation potentially impacting oil supplies."
Enforced sanctions could sideline about 1 million barrels per day of Iran's oil exports, about 1% of global oil supply, he said.
Investors were also focused on rising crude oil demand at China and India, the world's top and third-largest importers, respectively.
Persons:
Jun Rong, Trump, Brent, Yeap, centrifuges, Vivek Dhar, Priyanka Sachdeva, Phillip Nova, Sachdeva
Organizations:
Brent, U.S, West Texas, Russia, IG, IAEA, Commonwealth Bank of Australia
Locations:
Russia, Iran, Ukraine, United States, Kyiv, Iranian, China, India, U.S