WTI crude Oil traded around $99.5 per barrel on Monday, holding onto a 13% decline from last week, as investors mulled a coordinated release of strategic reserves from consuming nations, while a truce in Yemen could ease supply disruption concerns in the Middle East.
The US oil benchmark tumbled last week after Biden announced a massive release of crude from reserves to combat prices that have been buoyed by the war in Ukraine. Japan and Britain will also tap stockpiles, while New Zealand may participate too.
Meanwhile, the UN has brokered a 2-month truce between a Saudi-led coalition and the Houthi group aligned with Iran for the first time in the 7-year conflict, which could normalize energy flows in the region.
Elsewhere, investors tracked stop-start talks to restore the 2015 Iran nuclear deal after Tehran said it is close to reaching an agreement with the US, while demand concerns in China persisted as Shanghai extended its Covid lockdowns.