Brent crude closed above the mark of $91 a barrel on Monday, while West Texas Intermediate, or the US crude variant, traded above the mark of $85 a barrel.
Trump administration officials continued to signal that they are in no rush to get a deal with Iran. Energy Secretary Chris Wright told Fox News that US is playing the “long game” with Iran, while US envoy Jared Kushner said that Trump would be “patient on a deal.”
Iran also signaled that while a map to govern the future of the Strait of Hormuz had been drawn, intense talks continue and also went on to caution that any potential deal would not mean the immediate reopening of the Strait.
Gulf producers are continuing to find alternate ways to ship oil to customers bypassing the key chokepoint. Saudi Arabia is also following UAE’s footsteps and is now offering cargoes from outside the Strait.
Traders are awaiting a new wave of sanctions that the US Treasury Department has said would be announced during the course of the week. US stockpiles data will also be awaited today as last week’s figures showed a surprise increase to the highest level in two months. The American Petroleum Institute will release estimates for inventories later today, followed by official figures that will be released on Wednesday.
