NEW DELHI: Oil prices took a breather on Monday after last week's fall of about 3%, as investors weighed the chances for a U.S. rate cut against the prospect of a Russia-Ukraine deal that could free up more Russian supply through an easing of sanctions.

The United States and Ukraine were set to resume work on a revised plan for the peace deal ahead of a Thursday deadline set by U.S. President Donald Trump, after having agreed to adjust an earlier version that critics said was too favourable to Moscow.