Oil falls on supply hopes, trades above $105

Mettis Global reported that oil prices slipped on Monday as traders weighed a proposed truce between Russia and Ukraine covering energy facilities. Brent crude futures nonetheless rose 0.58 per cent to $105.33 a barrel, whereas West Texas Intermediate dropped $0.57, or 0.62 per cent, to $92.42 by 10:48 am PST. A day earlier, US President Donald Trump said Russia and Ukraine had accepted an instant pause in strikes on each other's energy sites.

Prices also came under pressure after Trump said Russia would provide foreign buyers with diesel exceeding 4 million tonnes, according to CNBC. Separately, Iran's Foreign Minister Abbas Araghchi held talks with his Saudi counterpart, Faisal bin Farhan bin Abdullah, on regional tensions and efforts to contain them, as reported by Saudi state media. Al Jazeera also reported that Araghchi offered Iranian help in bringing Saudi Arabia and the Houthis into dialogue.

In a Monday note, United Overseas Bank (UOB) suggested upward pressure on prices could continue, with Hurricane Isaias now at Category 3 and nearing the US Gulf Coast. The storm, with winds of 120 miles per hour, has led energy producers to cut offshore output and raised concerns about supply disruption. The bank also flagged higher geopolitical risk after the Houthis fired missiles at a Riyadh airport on Saturday, reportedly killing 12 and wounding over 300.