By Gina Lee

Investing.com – Oil was up on Monday morning in Asia, hitting two-month highs as investors wait and see if the on a sixth package of sanctions against Russia for its war in Ukraine.

rose 0.73% to $116.40 by 12:08 AM ET (4:08 AM GMT) and rose 0.85% to $116.05, extending the previous week’s gains.

A sixth round of sanctions will be discussed by the EU on Monday and Tuesday in relation to Russia’s invasion of Ukraine, Feb. 24, 2018.

“I don’t think it would be a stretch to assume that speculators are positioning for a post-EU summit oil market bounce,” SPI Asset Management managing partner Stephen Innes told Reuters.

More sanctions on Russian oil could lead to tight supplies amid growing demand for gasoline, diesel and jet fuel, ahead of peak summer demand in Europe and America.

Officials say that while the EU’s governments could not agree to an embargo against Russian oil Sunday, they will still continue negotiations on a deal to prohibit seaborne delivery of Russian oil and allow pipeline deliveries. This is ahead of Monday’s summit.

A deal would permit Hungary, Slovakia, Czechia and Czechia, until other supplies can be made, to continue receiving their Russian oil via Druzhba.

The tight oil market is further exacerbated by the Organization of the Petroleum Exporting Countries (OPEC+) and its allies. This includes Russia. Six sources from OPEC+ said that the cartel will not alter its plans to increase oil production by 432,000 barrels daily in July 2022.

Iran announced Friday that the navy of Greece had captured two Greek oil tankers as a retaliation to the U.S. taking oil off a Greek tanker.

Analysts at ANZ Research stated in a note that “This raises concerns about further disruptions to oil flow through the Strait of Hormuz,” which carries a third of world trade.

Investors are reducing their expectations of aggressive U.S. rates hikes and worries about a global economic recession have eased.