Oil prices fall on Ukraine summit plan, prospect of Iran nuclear deal

Oil markets have been jittery over the past month on worries a Russian invasion of its neighbour could disrupt crude supplies, but price gains have been limited by the possibility of more than 1 million barrels a day of Iranian crude returning to the market. According to a Reuters report, a senior European Union official said on Friday a deal to revive Iran's 2015 nuclear agreement was "very very close".

Analysts said the market remained tight, and any addition of oil would help, but prices would remain volatile in the near term as Iranian crude would only likely return later this year.

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"There's just so many pressures geopolitically it's difficult to know what the answer is (on market movements) - with Ukraine and Iran," Reuters quoted as saying National Australia Bank commodity analyst Baden Moore.

European Commission President Ursula von der Leyen said Russia would be cut off from international financial markets and denied access to major exports needed to modernise its economy if it invaded Ukraine.

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"If a Russian invasion takes place as the U.S. and U.K. have warned in recent days, Brent futures could spike above $US100/bbl, even if an Iranian deal is reached," Commonwealth Bank analyst Vivek Dhar said in a note.

-With agency inputs