Oil prices rose 1% on Monday on expectations that the Organization of the Petroleum Exporting Countries will cut production if needed to support prices, as well as the conflict in Libya, increased demand amid higher natural gas prices in Europe and slow growth in the United States.
And US West Texas Intermediate crude futures rose 1.2 percent to $ 94.15 a barrel at 02:41 GMT, to continue the gains made last week, amounting to 2.5 percent.
Brent crude futures also rose regarding 1% to $101.8 a barrel, to continue 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 – which left 32 people dead at the weekend – have also raised fears that the country will plunge into an all-out conflict that may once more disrupt crude supplies from the OPEC member country.
Both benchmarks were trading lower earlier today, as the dollar rose following comments from US Federal Reserve Chairman Jerome Powell last Friday, in which he said that the United States faces a long period of slow growth amid high interest rates.
“While a strong dollar is limiting commodity prices, the issue of supply shortages in oil markets is likely to continue to support the upside,” said CMC Markets analyst Tina Teng.
And oil prices were boosted by hints from Saudi Arabia, other members of the Organization of the Petroleum Exporting Countries and allies called “OPEC Plus” that they might cut production in order to balance the market.
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.
