Oil prices started the week's trading on the rise, continuing the gains recorded last week when it rose 4%, amid positive expectations regarding global demand.
The International Energy Agency raised its forecast for global oil demand growth by 110,000 barrels per day to 1.3 million barrels per day. The announced increase in estimates is the fourth since November.
All eyes are also on a number of important meetings of central banks this week, most notably the US Federal Reserve, which is expected to hold interest rates steady, but will issue its forecasts for inflation and economic growth.
On the geopolitical front, Israeli Prime Minister Benjamin Netanyahu said Sunday he would press ahead with plans to invade Rafah in the southern Gaza Strip, where more than a million displaced people are sheltering, in defiance of pressure from Israel's allies. The German chancellor said the move would make peace in the region very difficult.
In other developments in Russia, an attack caused a fire at the Slavyansk refinery in Kasnodar on Saturday, which processes 8.5 million metric tons of crude oil annually, or 170,000 barrels per day.
Geopolitical concerns remain elevated, analysts at ANZ wrote in a note cited by Reuters, pointing to an intensified Ukrainian drone campaign on Russian oil refineries over the weekend.
In terms of prices, Brent crude futures rose by about 0.3% to $85.63 per barrel. US crude futures also rose by 0.4% to $81.38 per barrel.
