Oil prices climbed by more than $1 on Monday as investors balanced diplomatic developments around the Ukraine war against renewed concerns over potential supply disruptions in the Middle East.
Brent crude futures rose $1.33, or 2.2%, to $61.97 a barrel by mid-afternoon GMT. U.S. West Texas Intermediate crude gained $1.31, or 2.3%, to $58.05. Both benchmarks had fallen by over 2% in the previous session.
Market sentiment improved as geopolitical risks returned to focus. Analysts noted that shifting expectations around Ukraine peace talks and renewed tensions in the Middle East provided support for crude prices, while thin holiday trading conditions increased volatility.
Volodymyr Zelenskiy said progress had been made during discussions with U.S. President Donald Trump on a potential framework to end the war in Ukraine. He added that U.S. and Ukrainian officials are expected to meet next week to finalize unresolved issues.
Zelenskiy also said direct talks with Russia would only take place after the United States and European leaders align on a Ukrainian-backed peace proposal.
Meanwhile, developments in the Middle East added to supply-side concerns. Recent Saudi airstrikes in Yemen have unsettled the region, raising fears of possible disruptions to oil flows, according to market analysts.
Saudi Arabia, the world’s largest oil exporter, is expected to cut the February official selling price of its flagship Arab Light crude for Asian buyers for a third consecutive month. The move would reflect weaker spot prices and ample global supply, according to refinery sources surveyed in Asia.
Investors are also watching upcoming U.S. inventory data closely. Market expectations suggest U.S. crude stockpiles declined last week, while gasoline and distillate inventories likely increased. The report was delayed due to the Christmas holiday.
Additional support came from strong Chinese seaborne crude imports, which helped keep global markets relatively tight. Analysts said Brent crude is finding support near the $60 per barrel level, with modest price recovery expected in 2026 as non-OPEC+ supply growth is projected to slow in the middle of the year.
