The oil prices are fluctuating Monday morning, with the market projecting continued limits on the global supply. Projections for the supply prop up Brent crude while the US reference oil slides. This coincides with signs of progress in the nuclear negotiations between the US and Iran.

A barrel of European reference oil, Brent, costs USD 93.61 Monday morning against USD 93.25 Friday afternoon. WTI trades concurrently for USd 92.12 against USD 92.66 Friday afternoon.

"Investors scooped up short-term profits on the news suggesting progress in the U.S.-Iran nuclear talks, but fresh buying kicked in again after the technical corrections as global supply is expected to stay tight," says chief analyst at Fujitomi Securities Co Ltd.Kazuhiko Saito to Reuters.

US President Joe Biden's administration restored sanctions waiters, giving Iran the opportunity for international nuclear cooperation projects. This comes at a time when the negotiations on the 2015 international nuclear deal enter the last phase.

According to Reuters, Iran could boost oil supply if the US were to lift the sanctions.

At the same time, members of the Organization of Petroleum Exporting Countries and their OPEC+ allies are struggling to meet their targets despite pressure from top consumers to raise production at a faster pace.

The oil prices have gone up by 20 percent over the course of a year. More increases could be on the way, according to analysts who project that a barrel of Brent crude will surpass USD 100 sometime this year.

Saito tells Reuters that the attitude in the market is that the oil output challenges will continue to be weighed down by the failure of OPEC+ to meet the output targets and the US not raising output much.

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