Oil prices rose on Monday as attacks on Caspian Sea oil pumping stations slowed oil flows from Kazakhstan, while investors monitored developments on a possible Moscow-Kiev cease-fire agreement that could ease sanctions and boost global supplies.

The dollar index, which hovered near a two-month low after weaker-than-expected U.S. retail data for January, also boosted oil prices by making crude cheaper for non-U.S. buyers.

Brent crude futures settled at $75.22 a barrel, up 48 cents. U.S. West Texas Intermediate crude was up 65 cents at $71.39 a barrel at 2:33 p.m. EST, and did not close at its normal time because of the U.S. Presidents Day holiday. The holiday resulted in relatively quiet trading volumes.

Crude oil prices gained support after drones attacked the Kropotkinskaya pipeline pumping station in Russia's southern Krasnodar region, cutting off oil flows from Kazakhstan to world markets by Western producers including Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM), the Caspian Pipeline Consortium said on Monday.

CPC, which operates the station, called the attack an act of terrorism but did not specify that Ukraine had sent the drones. However, an official in Ukraine's security services said Kyiv had attacked the station and a nearby oil refinery using drones.

"While the drone attacks have so far had a limited impact on Russian crude exports, the increasing frequency of such attacks is a concern as at some point it could trigger some supply risks," said UBS analyst Giovanni Staunovo.

The attacks come as the Trump administration and Russia prepare for preliminary talks in Saudi Arabia in the coming days.

European leaders held an emergency meeting in Paris on Monday following Trump's announcement of a possible face-to-face meeting with Russian President Vladimir Putin, with Britain saying it was ready to send peacekeepers to support a possible Ukraine peace deal.

"If sanctions relief were possible, we believe Brent crude could fall between $5 and $10/bbl if Russian crude suddenly didn't have to travel as far to India or China, and more supply suddenly became available," BofA analysts said in a note.

The prospect of a global trade war also kept oil prices from rising after Trump ordered trade and economic officials last week to study reciprocal tariffs on countries that impose tariffs on U.S. goods.

Meanwhile, officials from OPEC+, which brings together the Organization of the Petroleum Exporting Countries and allies including Russia, said the group had no plans to delay a series of monthly oil supply increases scheduled to begin in April, after Bloomberg News reported that the group was examining whether to delay the increases.(Newsmaker23)

Source: Investing.com