Oil prices edged higher on Monday, after falling more than 4 per cent last week, as investors looked ahead to talks between the US and Russia later this week on the war in Ukraine.

Brent crude futures were up 36 cents, or 0.54 per cent, to $66.95 a barrel at 1202 GMT, while US West Texas Intermediate crude futures were up 34 cents, or 0.53 per cent, to $64.22.

US President Donald Trump said on Friday that he would meet Russian President Vladimir Putin on August 15 in Alaska to negotiate an end to the war in Ukraine.

The talks follow increased US pressure on Russia, raising the prospect that penalties on Moscow could be tightened if a peace deal is not reached.

Trump set a deadline of last Friday for Russia, which invaded Ukraine in February 2022, to agree to peace or have its oil buyers face secondary sanctions. At the same time, Washington is pressing India to reduce purchases of Russian oil.

Oil prices fell in recent days as market participants reduced supply disruption estimates, likely because the US only imposed an extra tariff on India rather than all buyers of Russian oil, said UBS analyst Giovanni Staunovo.

UBS has lowered its year-end Brent crude forecast to $62 a barrel from $68, citing higher supply from South America and resilient output from sanctioned countries.

The bank added that Indian demand had fallen short of its expectations of late, and that it expected OPEC+ to pause its production hikes unless larger unexpected supply disruptions emerge.

An Exxon Mobil-led consortium began crude production four months earlier than expected at a fourth floating production, storage and offloading vessel in Guyana, Exxon said on Friday.

Trump’s higher tariffs on imports from dozens of countries, which took effect on Thursday, are expected to weigh on economic activity as they force changes to supply chains and fuel higher inflation.

Separately, data from the National Bureau of Statistics on Saturday showed China’s producer prices fell more than expected in July.