Oil prices retreated on Monday after the U.S. pulled back from initial sanctions threats against Colombia, reducing immediate concern over oil supply disruptions, though U.S. President Donald Trump's muscle-flexing is keeping markets twitchy.

Crude oil futures traded lower on Monday morning after the US threatened to impose tariffs and sanctions on Colombia after it refused to accept military deportation flights from the US.

Oil market momentum was kept in check on Monday as prices fluctuated in and out of negative territory, with traders on edge despite the U.S. pulling back from initial sanctions threats against Colombia,