Oil prices rose 1% on Monday on concerns about fuel supplies after a missile hit a fuel tanker operated by Trafigura in the Red Sea.
This comes at a time when Russia's exports of refined petroleum products are heading for a decline as many refineries continue to be repaired after being subjected to drone attacks.
Brent crude futures rose 83 cents to $84.38 a barrel, after hitting a session high of $84.80. West Texas Intermediate (WTI) rose 78 cents to $78.79 a barrel.
Commodity trading company Trafigura said on Saturday it was assessing security risks before proceeding with new convoys in the Red Sea after firefighters put out a fire in a tanker attacked by Yemen's Houthi group the previous day.
“Supply disruptions were limited, but that changed on Friday after an oil tanker operating for Trafigura was hit by a missile off the coast of Yemen,” ANZ analysts said in a note.
“With oil tankers connected to the US and UK currently at risk of attack, the market is likely to reprice the risks related to supply disruptions,” they added.
The two benchmarks rose for the second week in a row and stabilized at their highest levels in about two months on Friday, supported by concerns about supplies coming from the Middle East and Russia, while positive US economic growth and signs of Chinese stimulus boosted demand expectations.
Senior ministers from the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia, known as OPEC+, are scheduled to meet online on February 1.
Sources said that OPEC+ is likely to decide its oil production levels for April and beyond in the coming weeks, as the meeting will be held very early to make decisions on further production policy.