Oil prices remained near two-week highs on Monday, following gains of 6% last week, as geopolitical tensions deepened between Western powers and major oil producers Russia and Iran, increasing the risks of supply disruption.
Brent oil futures were up 13 cents, or 0.2 percent, at $75.30 a barrel by 0115 GMT, while West Texas Intermediate oil futures were at $71.38 a barrel. barrel, up 14 cents, or 0.2%.
Last week, both contracts posted their biggest weekly gains since the end of September to reach their highest settlement levels since November 7 after Russia fired a hypersonic missile at Ukraine in retaliation. warning to the United States and the United Kingdom following kyiv's strikes on Russia using American and British weapons.
“Recent trading indicates the war has entered a dangerous new phase, raising concerns about supply disruptions,” ANZ analysts led by Daniel Hynes said in a note.
Separately, Iran responded to a resolution adopted Thursday by the UN nuclear watchdog by ordering measures including the activation of several new and advanced centrifuges used for uranium enrichment.
“The IAEA censorship and Iran's response increase the likelihood that Trump will seek to implement sanctions on Iranian oil exports when he comes to power,” said Vivek Dhar, commodities strategist at the Commonwealth. Bank of Australia, in a note.
Implemented sanctions could sideline about 1 million barrels per day of Iranian oil exports, or about 1% of global oil supply, he added.
Iran's Foreign Ministry said on Sunday it would hold talks on its disputed nuclear program with three European powers on November 29.
Investors also focused on increasing demand for crude oil in China and India, which are the world's largest and third largest importers, respectively.
China's crude imports rebounded in November as falling prices led to demand for storage, while Indian refiners increased their crude output 3% from a year earlier to 5.04 million of bpd in October, supported by fuel exports.
