Oil prices rose as much as 2% on Monday after OPEC+ nations held their output targets steady ahead of a European Union ban and a price cap kicking in on Russian crude.
Brent crude futures were last up 72 cents, or 0.8%, to $86.29 a barrel at 0430 GMT, while U.S. West Texas Intermediate crude futures gained 70 cents, or 0.9%, to $80.68 a barrel.
Analysts said the OPEC+ decision was expected as major producers wait to see the impact of the EU import ban and Group of Seven $60-a-barrel price cap on seaborne Russian oil, with Russia threatening to cut supply to any country adhering to the cap. " Roll-off of the SPR releases, and implementation of the EU sanctions and price cap act to tighten the market, although we'd expect the market has already positioned for this outlook," he said, referring to the U.S. strategic petroleum reserve.
"Prices are currently weighed down by expectations of slow demand growth, despite the EU oil import ban on Russian crude and the G7 price cap. The adjustment to the EU ban and price cap is likely to support prices temporarily," Hittle said.
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