Oil rises slightly ahead of potential US-Iran talks

Iran and the US exchanged threats on Sunday, though President Donald Trump said he would be open to meeting Iranian President Masoud Pezeshkian, who is expected to be in New York this week for the UN General Assembly.

"The move higher in WTI and the stronger open in Brent have the appearance of a typical short-covering bounce after the recent decline, rather than a fundamental shift," said Tim Waterer, chief market analyst at KCM Trade.

"Traders who were positioned for further downside are taking some risk off the table while the diplomatic narrative plays out."

Over the weekend, Iran also conveyed its conditions to mediators for re-engaging in negotiations, Al Jazeera reported, citing Iran's security chief, Mohsen Rezaei.

Waterer added that prices were likely to remain range-bound and sensitive to headlines until there was either clear progress or a setback in diplomatic efforts between the United States and Iran.