Oil steadied after a weekly gain as traders tracked tensions over supplies, as well as the wider mood for risk assets after the Federal Reserve signaled a return to interest-rate cuts.

Brent traded near $68 a barrel after rising almost 3% last week, while West Texas Intermediate was above $63. The US has threatened to double a tariff on all imports from India to 50% in retaliation for the nation's purchases of Russian oil. Ahead of the penalty — which is set to take effect on Wednesday — Indian diplomats have said local processors would continue taking crude from Moscow.

Risk assets including commodities may extend gains on Monday after Fed Chair Jerome Powell flagged a potential resumption of rate cuts next month in remarks in a speech on Friday. Crude could benefit from the spur to economic activity, as well as a weakening of the US currency.

Global benchmark Brent has closed in the $60s-a-barrel every day this month as traders weighed challenges to Russian exports, efforts to end the conflict in Ukraine, and the drag from the US-led trade war. Futures remain about 9% lower this year on concern there will be a glut in the upcoming quarters after OPEC+ restarted a swath of idled production.

Trading volumes in Brent futures may be lower than usual on Monday, with some traders off for a UK public holiday.

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Prices:

Brent for October settlement added 0.1% to $67.81 a barrel at 7:35 a.m. in Singapore.

WTI for October delivery gained 0.1% to $63.65 a barrel.

Source: Bloomberg