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Published : 06 Apr 2026, 11:01 PM
Oil prices inched up in choppy trade on Monday, as investors awaited clarity on the status of talks between the US and Iran and remained wary about sustained supply losses due to shipping disruptions.
Brent crude futures LCOc1 were up 0.1 percent to $109.13 a barrel at 1326 GMT. US West Texas Intermediate crude CLc1 futures were trading up 0.69 percent, or 77 cents, at $112.31 per barrel.
The pricing moves in Asia trading on Monday were dwarfed by an 11 percent surge for WTI and an 8 percent rise for Brent during the previous trading session on Thursday, the biggest absolute price increase since 2020.
The US and Iran received the framework of a plan to end hostilities, but Iran rejected immediately reopening the Strait of Hormuz, after President Donald Trump threatened to rain "hell" on Tehran if it did not make a deal by the end of Tuesday.
Iran also said it had formulated its positions and demands in response to recent ceasefire proposals conveyed via intermediaries.
The Strait of Hormuz, which carries oil and petroleum products from Iraq, Saudi Arabia, Qatar, Kuwait and the United Arab Emirates, remains largely closed due to Iranian attacks on shipping after the war began on Feb 28.
Some vessels, however, including an Omani-operated tanker, a French-owned container ship and a Japanese-owned gas carrier, have passed through the Strait of Hormuz since Thursday, shipping data showed, reflecting Iran's policy to allow passage for vessels from countries it deems more friendly.
"The market is trying to realise what to expect going forward. The most important headline this weekend has been that some ships passed through the Strait," said SEB Research analyst Ole Hvalbye.
Hvalbye also highlighted that Europe continued to lose physical barrels and products to Asia due to the market tightening.
Seeking Alternative Sources
The Middle East supply disruptions have led to refiners seeking alternative sources for crude, particularly for physical cargoes in the US and Britain's North Sea. Spot premiums for US West Texas Intermediate crude have jumped to all-time highs on competition between Asian and European refiners.
Indian refiners have also postponed maintenance shutdowns of their units to meet local fuel demand.
On Sunday, OPEC+, consisting of some members of the Organization of the Petroleum Exporting Countries and allies such as Russia, agreed to a modest rise of 206,000 barrels per day for May.
"OPEC movements look to be challenged based on export availability," said Rystad analyst Janiv Shah.
Saudi Arabia also set the official selling price of May Arab Light crude oil to Asia at a record premium of $19.50 a barrel above the Oman/Dubai average, an increase of $17 from the previous month, Aramco said.
Meanwhile, Russian supply has been disrupted recently by Ukrainian drone attacks on its Baltic Sea export terminals. Media reports on Sunday said its Ust-Luga terminal resumed loadings on Saturday after days of disruptions.
Exports from the Black Sea port of Tuapse are set to rise to 794,000 metric tons in April, up 8.7 percent on a daily basis from 755,000 metric tons planned for March, according to two traders and Reuters calculations.
