Oil prices were little changed in choppy trade on Monday, as investors awaited clarity on the status of talks between the U.S. and Iran even as they remained wary about sustained supply losses due to shipping disruptions.
Brent crude futures LCOc1 rose 76 cents, or 0.7%, to $109.79 a barrel at 0656 GMT. U.S. West Texas Intermediate crude CLc1 futures were trading 53 cents, or 0.5% lower, at $111.01 per barrel.
The pricing moves in Asia trading on Monday were dwarfed by an 11% surge for WTI and an 8% rise for Brent during the previous trading session on Thursday, the biggest absolute price increase since 2020. O/R
On Sunday, Trump ratcheted up pressure on Tehran, threatening in an expletive-laden Easter Sunday social media post to target Iran's power plants and bridges on Tuesday if the strategic Strait of Hormuz is not reopened. Still, prices were largely unchanged on Monday.
Iran and the United States have received a plan to end hostilities that could come into effect on Monday and reopen the Strait of Hormuz, a source aware of the proposals said on Monday.
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 February 28.
"Not being able to open the Strait of Hormuz is becoming more a question of political victory," said Mukesh Sahdev, founder and CEO at consultancy XAnalysts.
Because of the Middle East supply disruptions, refiners are seeking alternative sources for crude, particularly for physical cargoes in the U.S. and Britain's North Sea.
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 war threatens to linger on as Iran has officially told mediators it is not prepared to meet with U.S. officials in Islamabad in the coming days and efforts to produce a ceasefire have reached a dead end, The Wall Street Journal reported on Friday.
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.
However, that decision will largely exist on paper as several of the group's key producers are unable to raise output due to the war.
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.
(Reuters - Reporting by Katya Golubkova in Tokyo and Sudarshan Varadhan in Singapore; Editing by Christian Schmollinger, Thomas Derpinghaus and Susan Fenton)
AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week