Oil inches up as supply concerns weigh despite reserves release, Yemen truce | Reuters

Oil inches up as supply concerns weigh despite reserves release, Yemen truce | Reuters

Oil prices inched higher on Monday as worries about tight supply persisted even as investors eyed the release of supplies from strategic reserves from consuming nations and a truce in Yemen sparked hopes that supply issues in the Middle East could abate.

Brent crude futures were up 9 cents, or 0.09%, to $104.48 a barrel by 0427 GMT while U.S. West Texas Intermediate crude was at $99.30 a barrel, up 3 cents, or 0.03%. Both contracts slipped $1 when markets opened on Monday.

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. Saudi oil facilities have come under attack by the Houthis during the conflict, adding to supply disruption from Russia. read more

"Still, the fragile detente does little to alleviate the absence of Russian oil," said Stephen Innes, managing partner at SPI Asset Management in a note.