NYMEX crude oil up at $106.65

Jeffrey Halley, senior analyst at OANDA, said in a report that there is a growing sense that Europe will eventually move to reduce deals with the Russian energy sector, further squeezing supplies.

The U.S. still sees a chance to overcome remaining differences with Iran in the nuclear deal negotiations, State Department spokesman Price said Monday. For its part, Iran said Monday that negotiators would only return to Vienna if they return again for one thing - to finalize the nuclear deal, "and we will not go to Vienna for new negotiations."

Tina Teng, market analyst at CMC Markets APAC & Canada, said, "Geopolitical tensions are most likely to support higher oil prices in the coming days, despite efforts by the U.S. and allies (referring to the coordinated release of reserves by consuming countries). In the longer term, oil prices are likely to continue to rise due to supply shortages and the need to hedge against high inflation."

Consulting firm Wood Mackenzie estimated on Monday (April 4) that EU member states and developed economies, including Japan and South Korea, could release about 650,000 barrels per day with a similar grade and volume size to Russian crude.