SINGAPORE (Reuters) -Oil prices inched higher on Monday as worries about tight supply persisted even as investors eyed the release of supplies from strategic reserves from consuming nations and a truce in Yemen sparked hopes that supply issues in the Middle East could abate.

MEXICO CITY (Reuters) -Mexico, which has been subsidizing gasoline to soften price spikes, said on Saturday the policy would not apply in the U.S. border region this week, citing shortages as more Americans drive south to fill their tanks.

Oil prices extended losses on Monday as investors eyed the release of supplies from strategic reserves from consuming nations, while a truce in Yemen could ease supply disruption concerns in the Middle East.

Britain could build up to seven new nuclear power stations as part of a radical expansion of homegrown energy following Russia's invasion of Ukraine, Business Secretary Kwasi Kwarteng told The Sunday Telegraph.

Japan may expand a subsidy programme for gasoline and other fuels among measures under consideration to ease soaring energy costs, the industry minister said on Sunday.

Mexico, which has been subsidizing gasoline to shield residents from price spikes, announced on Saturday that the policy would not apply this coming week in the border region with the United States, including Tijuana, one of the busiest border crossings in the world.