Oil prices are slightly declining on Monday as investors analyze contrasting scenarios of reduced supplies of Russian energy resources due to the crisis in Ukraine and increased supply in the oil market due to the possible conclusion of a nuclear deal between Iran and world powers.

Brent crude futures were down 0.53% to $93.04 per barrel by 09:34 MSC, WTI – by 0.29% to $90.81 per barrel.

Earlier, both contracts added more than $1, but lost the advantage after reports of a possible summit between US President Joe Biden and Russian President Vladimir Putin.

Biden and Putin have agreed in principle to hold a summit to discuss the situation over Ukraine, French President Emmanuel Macron said Monday, opening up the possibility of an exit from Europe’s worst crisis in years.

Meanwhile, a senior EU official said Friday that agreement to revive the Iran nuclear deal is “very, very close.”

Analysts say supply levels in the market remain tight and any increase in oil volumes will help, but prices will remain volatile in the near term as Iranian oil is not likely to return until later this year.

“There are just so many geopolitical factors that it’s hard to say what the answer is (in terms of market dynamics) – with Ukraine and Iran,” said Baden Moore at National Australia Bank.

European Commission chief Ursula von der Leyen said that if Russia invaded Ukraine, it would be cut off from international financial markets and denied access to key exports needed to modernize its economy.