On Monday, oil prices went up by more than $1 a barrel after top exporter Saudi Arabia raised prices for its crude sold to Asia and the US, and as indirect US-Iran talks on reviving a nuclear deal appeared to hit an impasse, as well as the US-Iran talks on reviving a nuclear deal.
Brent crude futures for February gained $1.69, or 2.4%, to $71.57 a barrel by 0033 GMT, while US West Texas Intermediate crude for January was at $67.92 a barrel, up $1.66, or 2.5%.
On Sunday, Saudi Arabia raised the January official selling prices for all crude grades sold to Asia and the United States by up to 80 cents from the previous month.
The price hikes were implemented despite the decision by the Organization of the Petroleum Exporting Countries and their allies including Russia, a group known as OPEC to increase supplies by 400,000 barrels per day in January.
After indirect US-Iranian talks on saving Iran's nuclear deal in 2015, prices were buoyed by the diminishing prospects of a rise in Iranian oil exports. European officials expressed dismay at the demands of Iran's new, hardline government on Friday. The talks are expected to resume in the middle of the week.
Both benchmarks rebounded last week after falling for the sixth week in a row for the first time since November 2018 due to concerns that the new coronavirus variant Omicron could affect global economic growth and fuel demand.
In another sign of the turmoil unleashed by the ever-changing Pandemic, the head of International Monetary Fund said the global lender is likely to lower its global economic growth estimates because of the new variant.
Omicron has been found in about one-third of US states as of Sunday.