Oil prices steady on Monday

Oil prices held broadly steady in volatile trading on Monday as markets awaited clarity on US–Iran talks and weighed ongoing supply risks from shipping disruptions in the Strait of Hormuz.

Brent crude rose 0.7 per cent to $109.79 a barrel, while US West Texas Intermediate fell 0.5 per cent to $111.01, following sharp gains of 8 per cent and 11 per cent respectively in the previous session, the largest increases since 2020.

Uncertainty persisted after Donald Trump threatened to target Iranian infrastructure if the Strait remains closed, even as reports indicated a potential plan to end hostilities and reopen the key route. The waterway, critical for oil flows from major Gulf producers, has been largely shut since late February due to Iranian attacks on shipping.

Despite limited vessel movements allowed for certain countries, supply disruptions have pushed refiners to seek alternative crude sources, particularly from the United States and the North Sea.

Meanwhile, the OPEC+ agreed to raise output by 206,000 barrels per day in May, though the increase is expected to have limited impact as several producers struggle to boost supply amid the conflict.

Attribution: Reuters