Oil prices rise on Monday

Oil prices rose on Monday, holding above $100 a barrel as constrained supplies and the absence of a US–Iran deal supported the market, despite planned output increases by OPEC+.

Brent crude gained 0.6 per cent to $108.84 a barrel, while US West Texas Intermediate rose 0.6 per cent to $102.59, recovering part of Friday’s losses amid ongoing geopolitical uncertainty and disrupted flows through the Strait of Hormuz.

Market sentiment remained firm as negotiations between Washington and Tehran continued without a breakthrough, with Donald Trump indicating efforts to assist stranded vessels, while Iran maintained its stance on delaying nuclear talks.

Analysts said persistent supply disruptions and risks to Gulf shipping could keep prices elevated, with upside pressures likely to continue in the near term.

Meanwhile, OPEC+ agreed to raise output targets by 188,000 barrels per day in June for seven members, marking a third consecutive monthly increase, although the additional supply is expected to remain largely on paper as regional tensions continue to curb exports.

Attribution: Reuters