By Yuka Obayashi

TOKYO, Reuters – While oil prices fell on Monday as investors took profit from a surge the previous session, global supply worries loomed due to the European Union’s plans to ban imports from Russia.

Futures fell 64 cents or 0.6% to $110.91 per barrel at 0137 GMT. U.S. West Texas Intermediate crude futures declined 60 cents or 0.5% to $109.89 per barrel.

These benchmarks increased about 4% over Friday. WTI reached $111.71, its highest level since March 28, at $111.71.

“Oil market are likely to gain this Week as a pending ban on Russian oil by the European Union will further tighten world supplies of crude and other fuels,” stated Kazuhiko Sako, chief analysts at Fujitomi Securities Co Ltd.

According to four diplomats, officials and other representatives, the EU is still determined to reach an agreement on a phased ban on Russia’s oil production this month, in spite of concerns over supply in eastern Europe.

Moscow, which called its actions in Ukraine “a military operation”, imposed sanctions last week on several European energy firms, raising concerns about supply.

U.S. gasoline prices reached an all-time record on Monday due to falling stocks and supply issues.

Fujitomi Securities’ Saito stated that oil prices were bullish, particularly WTI’s short-term contract. “Oil prices also continued rising amid lower imports from Europe of petroleum products,” Saito added.

The supply side of the equation saw U.S. oil companies add oil and rigs in the week ending May 13, as higher prices and prompting by the federal government, drillers returned to the wellpad.

Elsewhere, OPEC+ – the Organization of the Petroleum Exporting Countries – and its allies (Russia) have undershot previously agreed production increases because of under-investment by some OPEC members in their oilfields, and losses in Russian output.

OPEC released its latest monthly report, showing that April’s output rose 153,000 barrels/day (bpd) by 28.65 Million bpd. However, this was less than 254,000 bpd allowed in the OPEC+ arrangement.