Oil prices increased on Monday as investors are closely following the G7 meeting for decisions on Russian oil exports and a revival of the Iran nuclear deal.
International benchmark Brent crude was trading at $109.57 per barrel at 0720 GMT for a 0.43% increase after closing the previous session at $109.1 a barrel.
American benchmark West Texas Intermediate (WTI) was at $108.02 per barrel at the same time for a 0.37% gain after the previous session closed at $107.62 a barrel.
Fear of lower demand due to a global economic slowdown and worry over lost Russian oil supply amid sanctions are pushing oil prices higher.
The leaders of the G7 countries on Sunday discussed a price cap on Russian oil to tackle inflation and reduce dependence on Russia.
By setting a limit on the price Russia can charge for its oil, Western countries hope to curtail Moscow's revenues while at the same time allowing more oil supply to reach the global market.
At the summit, the leaders are also expected to discuss the negotiations on the Iran nuclear deal. Markets expect that Iran will start oil exports again.
Meanwhile, markets are focused on Thursday's meeting by the Organization of the Petroleum Exporting Countries (OPEC), led by Saudi Arabia, and the OPEC+ group, which consists of some non-OPEC producer countries.
In its last meeting, the OPEC+ group decided to increase production by 648,000 barrels in July and August, instead of 432,000 barrels per day as expected.
By Zeynep Beyza Kilic
Anadolu Agency
energy@aa.com.tr