Price action
Standard Brent crude futures rose 39 cents, or 0.5 percent, to $87.39 per barrel by 0033 GMT, and US West Texas Intermediate crude futures rose 40 cents, or 0.5 percent, to $82.30 per barrel.
The two benchmarks fell by 29 cents in the previous session amid indications that the recent escalation of tension between Israel and Iran will have little impact on oil supplies from the region in the near term.
However, analysts pointed out that many risks remain in the oil market. ANZ analysts highlighted the US approval of new sanctions on the Iranian oil sector, which expand existing sanctions to include foreign ports, ships and refineries that intentionally process or ship Iranian crude.
“The geopolitical backdrop is still fraught with many risks at the moment, so it is clear that we will see a lot of volatility until there is more clarity around it,” ANZ analysts said in a podcast.
“The imminent threat of geopolitical risks spilling over into oil market fundamentals has largely faded, but the overall trend of this risk since October of last year is worrying,” Barclays analysts said in a note on Monday.
US crude oil inventories are expected to increase last week while refined product inventories are likely to decline, according to a preliminary Reuters poll of analysts.
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