Oil prices remain stable as tight supply counters falling US markets

However, both WTI and Brent hit seven-year highs last week and remain on track for monthly gains of more than 10 percent.

Indicating current tight supply, Brent's six-month spread is in backwardation, with front-month delivery futures trading at a premium of about $5 a barrel.

Ahead of an expected US Federal Reserve interest rate decision on Wednesday, which could dent crude prices, geopolitical risks involving oil and gas producer Russia have been supporting oil.

NATO on Monday said it was putting forces on standby and reinforcing eastern Europe with more ships and fighter jets in what Russia denounced as Western "hysteria" in response to its build-up of troops on the Ukraine border.

In the Middle East, Yemen's Iran-aligned Houthi movement launched a missile attack on Monday on a United Arab Emirates base hosting the U.S. military. The attack was thwarted by U.S.-built Patriot interceptors, U.S. and Emirati officials said.

Also fuelling supply concerns is the difficulty encountered by OPEC+, which comprises the Organization of the Petroleum Exporting Countries (OPEC) along with Russia and other producers, with efforts to hit its targeted monthly output increase of 400,000 barrels per day.