Oil prices were little changed at the start of the week, as traders monitored geopolitical risks ahead of the resumption of talks between the United States and Iran on Tuesday.
Brent crude traded near $68 a barrel, after its first consecutive weekly decline this year, while West Texas Intermediate crude was near $63.
US President Donald Trump said on Friday that regime change would be the best outcome for Iran, increasing pressure ahead of planned negotiations in Geneva.
Oil has risen by about 10% this year as tensions with Iran escalate and the possibility of supply disruptions in a region that pumps about a third of the world's crude has overshadowed concerns about a growing surplus.
Futures contracts pared some of those gains as the risk of an imminent hit receded, and after the International Energy Agency lowered its forecast for demand growth this year.
Robert Rennie, head of commodities and carbon research at Westpac Banking Corp., said: While political tensions are providing short-term support, the supply picture is poised to return strongly as a driver of crude prices in the coming months.
He added: We still expect Brent to eventually slip into the low 60s range, as we progress through the first half of this year and prices begin to come under increasing pressure due to rising global production.
Awaiting the results of talks to end the Ukraine war
Meanwhile, US-led talks to end the war in Ukraine are also scheduled to begin in Geneva on Tuesday, but prospects for a quick end to the nearly four-year-long conflict and a return of Russian barrel bombs appear slim.
Drone strikes on the Black Sea coast over the weekend damaged infrastructure at the port of Taman and fuel tanks.
Separately, some members of the OPEC+ alliance said they see room to resume production increases in April, arguing that concerns about the surplus are exaggerated, although the group did not commit to any action before its meeting on March 1.
The final decision may depend on whether Trump launches military strikes against Iran, or reaches a nuclear agreement with the OPEC member state, according to one delegate.
In the latest trading, Brent crude futures for April settlement were little changed at $67.74 a barrel by 1:52 p.m. Singapore time. West Texas Intermediate crude futures for March delivery also held steady at $62.88 a barrel.
