Oil prices rebounded after plunging nearly 10% in the previous two sessions, supported by concerns over supply as the European Union (EU) sought support to ban Russian oil.
Tracking into the European session, Brent oil futures rose around 2.9% to trade at $ 104 a barrel while US WTI was up 2.7% to trade at $ 101 a barrel.
Last week, the EU had proposed to impose sanctions on Russian oil, but the vote was postponed as several European countries voiced concerns that their economies could be affected.
Analysts are of the view that the impact of the ban could be limited if the ban is reduced, but prices could still rise higher.
Concerns were growing after United Arab Emirates (UAE) energy minister Suhail al-Mazrouei warned that when fuel demand recovers from Covid-19, OPEC+ may not be able to meet demand without further investment.
This follows a statement by Saudi Arabia's energy minister who said the world needs to pay attention not only to the sharp supply of crude oil but also to the declining energy capacity more widely.
