Oil prices rose 1% on Monday and expectations of OPEC production cuts if needed to support prices, conflict in Libya and increased demand amid higher natural gas prices in Europe helped offset bleak growth prospects in the United States.
According to Arab Net, US West Texas Intermediate crude futures rose $1.09, or 1.2 percent, to $94.16 a barrel, to continue the gains made last week, which amounted to 2.5 percent.
Brent crude futures also rose 89 cents, or 9.0%, to $101.88 a barrel, continuing the gains made last week, which amounted to 4.4%.
Oil prices were stronger amid continued pressure on fuel demand from Europe's energy crisis and supply constraints, commodity analysts at National Australia Bank said in a note.
Violent clashes in the Libyan capital that killed 32 people over the weekend have raised fears the country is sliding into all-out conflict that could once again disrupt crude supplies from the Organization of the Petroleum Exporting Countries (OPEC).
Both benchmarks traded lower earlier in the day as the dollar rose after US Federal Reserve Chairman Jerome Powell's comments on Friday that the US faces a prolonged period of slow growth amid rising interest rates.
While a strong dollar is limiting commodity prices, the issue of short supply in oil markets is likely to continue to support the upside, said CMC Markets analyst Tina Teng.
Oil prices were boosted by hints from Saudi Arabia, other members of the Organization of the Petroleum Exporting Countries and allies of the OPEC+ cartel, that they might cut production in order to balance the market.
A source familiar with the matter told Reuters on Friday that the UAE agreed with what Saudi Arabia thinks about production policy, while the Omani Oil Ministry said it supported OPEC+ efforts to maintain market stability.
Sources said last week that OPEC would consider cutting production to offset any increase by Iran in the event of lifting oil sanctions imposed on it if Tehran agreed to revive the nuclear deal.
