Oil prices extended gains on Monday as investors stood on guard for any moves against Russian oil and gas exports that might come out of a meeting of leaders of the Group of Seven (G7) nations meeting in Germany, Reuters reported.
The prospect of more supply tightness loomed over the market as western governments sought ways to cut Russia's ability to fund its operation in Ukraine, even though G7 leaders were also expected to discuss a revival of the Iran nuclear deal - which might lead to more Iranian oil exports.
Producer nations in OPEC+, which includes Russia, will likely stick to a plan for accelerated oil output increases in August when they meet on Thursday, sources said.
But, for now, the pressing supply worries outweighed growing concerns over the potential for a global recession following a string of downbeat US economic data.
G7 leaders, who began their meeting on Sunday, are expected to discuss options for tackling rising energy prices and replacing Russian oil and gas imports, as well as further sanctions that do not exacerbate inflation.
These moves include a possible price cap on Russian oil exports to reduce Moscow's revenues while limiting damage to other economies.
RHM/PR
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