Oil prices rose in Asian trade Monday after talks between Ukraine and Russia show little signs of progress, Dow Jones Newswires reported.
Financial markets are still largely determining oil prices by assessing the likelihood of a diplomatic solution to the Ukraine conflict, CBA said.
GAS PRICES: DIESEL NEARS $7 PER GALLON IN CALIFORNIA
“Physical shortages, linked to current sanctions on Russia, though will eventually play a more dominant role in oil price determination,” CBA says.
Meanwhile, the market is also keeping an eye on the fresh wave of COVID-19 outbreaks in China, which has resulted in some of the heaviest virus-related restrictions since early 2020, ANZ reported.
GOP LAUNCHES VOTER REGISTRATION INITIATIVE AT GAS STATIONS AMID SURGING PAIN AT THE PUMP
Front-month WTI crude oil futures are 2.1% higher at $106.93/bbl, while Brent rises 1.9% to $110.01/bbl.
Reuters reported oil prices also lost ground last week, although they were edging higher on Monday as there was no easy replacement for Russian barrels in a tight market.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Long oil and commodities were the most crowded trade, and vulnerable to a pullback.
– Reuters contributed to this report.