Oil rises above $105 as supply concerns persist | Reuters

Oil rises above $105 as supply concerns persist | Reuters

Oil rose above $105 a barrel on Monday as concern about tight supply arising from Russia's invasion of Ukraine and the lack of an Iranian nuclear deal persisted despite countries releasing oil from strategic reserves.

The invasion of Ukraine in February sharply ramped up supply worries that were already underpinning oil prices. Sanctions imposed on Russia and buyers' avoidance of Russian oil have raised fears of larger supply losses from this month.

Brent crude was up 63 cents, or 0.6%, to $105.02 a barrel by 0805 GMT. U.S. West Texas Intermediate crude gained $1.08, or 1.1%, to $100.35. Both contracts slipped $1 when markets opened on Monday.

"Will the release of barrels from strategic reserves fill a shortfall caused by sanctions and buyer aversion to Russian oil? In a word, no," said Stephen Brennock of oil broker PVM.