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Oil prices swung up and down on Monday, as some investors booked profits amid signs of progress in talks between the United States and Iran, while others remained optimistic about support for rising consumption as supply constraints remain.
Brent crude rose 20 cents, or 0.2 percent, to $93.47 a barrel, after earlier touching $94, its highest since October 3, 2014. It also declined in early trading to $92.47 a barrel.
US West Texas Intermediate crude fell 33 cents, or 0.4 percent, to $91.98 a barrel, after falling to the level of $91.35 earlier in the session, in which it had also risen to $92.73.
Both benchmarks rose by more than two dollars on Friday, to record a rise for the seventh consecutive week, amid fears of supply disruptions resulting from political turmoil in major oil-producing countries.
On Friday, the administration of US President Joe Biden restored Iran’s sanctions exemption to allow international nuclear cooperation projects as talks on the 2015 international nuclear deal entered the final stage.
If the United States lifts sanctions on Iran, it could increase oil shipments, leading to a global oil supply.
Analysts say crude prices, which have already risen by about 20 percent this year, are likely to exceed $100 a barrel due to strong global demand.
The OPEC+ group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and a group of other producers led by Russia, is finding it difficult to meet production targets despite pressure from consuming countries to increase production at a faster pace.
Adding to supply concerns, continued tension in eastern Europe, where White House National Security Adviser Jake Sullivan said on Sunday that Russia could invade Ukraine within days or weeks but could still choose a course of diplomacy.
