Oil prices rise over 1% on Monday

Oil prices rose more than 1 per cent on Monday as stalled US-Iran peace talks and limited shipments through the Strait of Hormuz kept global supplies tight, extending last week’s sharp gains.

Brent crude climbed $1.35, or 1.3 per cent, to $106.68 a barrel by 0453 GMT after earlier rising more than $2. US West Texas Intermediate (WTI) gained 95 cents, or 1 per cent, to $95.35 a barrel.

Both benchmarks posted their biggest weekly gains since the start of the war last week, with Brent up nearly 17 per cent and WTI rising 13 per cent.

Hopes of renewed diplomacy faded after US President Donald Trump cancelled a planned trip to Islamabad by envoys Steve Witkoff and Jared Kushner, while Iranian Foreign Minister Abbas Araqchi arrived in Pakistan. Phillip Nova analyst Priyanka Sachdeva said Trump’s recent comments on Truth Social regarding the Strait of Hormuz had added to elevated geopolitical risk premiums.

Shipping data from Kpler showed traffic through the waterway remained constrained, with only one oil products tanker entering the Gulf on Sunday.

Goldman Sachs raised its fourth-quarter oil price forecasts to $90 a barrel for Brent and $83 for WTI, citing reduced Middle East output and growing risks of product shortages.

Attribution: Reuters