Oil prices slightly increased following a report showing a substantial decrease in US crude oil reserves, while concerns arose about a potential ceasefire between Russia and Ukraine in the Black Sea.

The price of Brent rose above $73 per barrel after ending the previous day with minimal change, and West Texas Intermediate was hovering around $69. The American Petroleum Institute reported a decline of 4.6 million barrels in US oil inventories last week, potentially the largest drop since November if confirmed by official data on Wednesday.

The US announced that Russia and Ukraine had reached an agreement on a truce to ensure safe maritime passage in the Black Sea. However, the Kremlin insisted on certain conditions, such as the lifting of sanctions, to determine its involvement. Leading energy traders suggested they might resume business with Russia if sanctions were lifted, as Russia has managed to redirect its oil shipments successfully in recent years.

Despite the recent increase in oil prices, they are still over 10% lower than their peak in January due to trade tariffs imposed by the Trump administration and subsequent retaliatory actions from affected countries, causing instability in international markets. Further tariffs, including a tax on purchasers of Venezuelan oil and gas, are expected in the coming week.

Traders have been purchasing bullish oil options as a hedge against the risk of price spikes due to US sanctions. President Trump has pledged to exert "maximum pressure" on Iran to restrict its oil exports.