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Brent crude futures were up $3.40, or 3.2%, at $111.33 a barrel
by 0958 GMT, adding to a 1.2% rise last Friday.
U.S. West Texas Intermediate (WTI) crude futures rose $3.65, or
3.5%, to $108.35, extending a 1.7% jump last Friday.
Prices moved higher ahead of talks this week between European
Union governments and U.S. President Joe Biden in a series of
summits that aim to harden the West's response to Moscow over
its invasion of Ukraine.
EU governments will consider whether to impose an oil embargo on
Russia.
Early on Monday Ukraine's deputy prime minister, Iryna Vershchuk,
said there was no chance the country's forces would surrender in
the besieged eastern port city of Mariupol.
With little sign of the conflict easing, the focus returned to
whether the market would be able to replace Russian barrels hit
by sanctions.
"A Houthi attack on a Saudi energy terminal, warnings of a
structural shortfall in production from OPEC and a potential
European Union oil embargo on Russia have seen oil prices jump
in Asia," OANDA senior analyst Jeffrey Halley said in a note.
"Even if the Ukraine war ends tomorrow, the world will face a
structural energy deficit thanks to Russian sanctions."
Over the weekend, attacks by Yemen's Iran-aligned Houthi group
caused a temporary drop in output at a Saudi Aramco refinery
joint venture in Yanbu, feeding concern in a jittery oil
products market, where Russia is a key supplier and global
inventories are at multi-year lows.
The latest report from the Organization of the Petroleum
Exporting Countries (OPEC) and allies including Russia, together
known as OPEC+, showed some producers are still falling short of
their agreed supply quotas.
(Additional reporting by Sonali Paul in Melbourne and Florence
Tan in Singapore; Editing by David Goodman)
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