By Zhang Mengying
Investing.com – Oil was up on Monday morning in Asia as investors looking for more clues from the G7 meeting this week on Russian oil exports and a revival of the Iran nuclear deal.
Brent oil futures inched up 0.06% to $109.16 by 12:56 AM ET (4:56 AM GMT) and crude oil WTI futures stabilized at $107.62. Oil prices remained well supported above $100 a barrel as crude and oil product supplies remained tight after the West posed sanctions on Russian oil.
Leaders of the Group of Seven (G7) are expected to discuss ways to tackle rising energy prices. Measures include a possible price cap on Russian crude and oil products exports, which might curb Russia’s revenue and at the same time reduce the damage to other economies.
“It’s unclear whether a price cap will achieve this outcome,” Commonwealth Bank of Australia (OTC:CMWAY) analyst Vivek Dhar said in a note.
“There’s still nothing stopping Russia from banning oil and refined product exports to G7 economies in response to a price cap, exacerbating shortage conditions in global oil and refined product markets.”
G7 will also discuss the prospect of reviving the Iran nuclear talks after the European Union’s foreign policy chief try to unblock the stalled negotiations, according to Reuters.
“This week, traders’ focus might be on a potential resumed Iran nuclear talk, which could lead to a revival of Iran’s oil exports,” CMC Markets analyst Tina Teng told Reuters.