Oil prices trimmed gains during Asian trading on Monday as markets watched for developments that could impact global supply flows while tracking a key deadline tied to the resumption of shipping through one of the most critical energy routes.
Brent crude futures for June rose slightly to around 119.30 dollars per barrel after posting strong gains earlier in the session, while West Texas Intermediate eased to about 110.85 dollars following an initial rise, after a sharp rally in the previous session driven by supply concerns.
The pullback in gains came as investors assessed the possibility of easing tensions that could support more stable oil flows, although uncertainty remains over the likelihood of a quick resolution, keeping markets cautious.
At the same time, attention remains focused on shipping activity across key energy corridors, where the return of normal flows is seen as a key factor in relieving price pressure following weeks of supply constraints.
On the supply side, OPEC plus agreed to increase production by around 206 thousand barrels per day in May, although the impact is expected to remain limited in the near term due to logistical challenges that may delay the arrival of additional supply.
Elevated oil prices continue to reinforce global inflation concerns, with higher energy costs expected to feed into transportation, manufacturing, and consumer sectors, adding pressure on economic growth if supply disruptions persist.
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