Oil prices traded mixed on Monday amid signs that supply issues in the Middle East could abate.
Benchmark Brent crude futures were marginally lower at $104.34 a barrel, while U.S. West Texas Intermediate crude futures were up 0.4 percent at $99.62.
Geopolitical tensions continue to remain on investors’ radar, with the EU discussing a new round of sanctions on Russia in response to multiple reports that Russian troops executed unarmed civilians in Ukrainian towns.
The new restrictions could target individuals, but could also include a ban on Russian ships using EU ports.
The downward pressure comes from a two-month truce in Yemen, which could ease threats to supply in the Middle East.
The United Nations has brokered a two-month truce between a Saudi-led coalition and the Houthi group aligned with Iran for the first time in the seven-year conflict.
On the demand front, there are reasonable concerns over Chinese demand. The Shanghai lockdown has been extended indefinitely, casting further uncertainty over Chinese supply chains.
China’s transport ministry expects a 20 percent drop in road traffic and a 55 percent fall in flights during the three-day Qingming holiday that starts on Sunday.