Oil prices pulled back in volatile trading on Monday as both crude benchmarks fell after rallying more than $1 a barrel early in the session on escalating tensions between the U.S. and Iran.
U.S. light crude ended the session down 37 cents at $67.89 a barrel, after peaking at $69.31. Brent crude oil rose to a high of $74.50 before easing back to trade 6 cents lower at $73.01 by 2:27 p.m. ET.
The latest downward jog came after the market focus returned to oversupply risk as Saudi Arabia and other large producers ramp up production ahead of the November deadline for other countries to comply with U.S. sanctions on Iranian crude sales, said Phil Flynn, an analyst at Price Futures Group in Chicago.
"They're just continuing to chase from one headline to another," Flynn said. The market is continuing volatile swings that were seen last week, he said.