Oil rises in anticipation of OPEC supply cut and demand growth
On Monday, the worrying outlook for US growth helped stabilize oil prices, despite OPEC's oil cut expectation to support prices, the conflict in Libya, and rising demand in Europe driven by rising gas prices.
Brent crude futures rose 16 cents, or 0.16%, to $101.15 a barrel as of 0632 GMT, extending last week's gain of 4.4%.
West Texas Intermediate (WTI) crude futures rose 45 cents, or 0.48%, to $93.51 a barrel, gaining 2.5% last week.
Oil prices are rising in hopes of OPEC and its allies to restore market equilibrium in response to the revival of the Iran nuclear deal.
The pull of strong US oil exports and a larger-than-expected oil inventory over the past few weeks also eased some demand concerns amid slowdown fears.
Both benchmark contracts traded lower earlier in the day as the dollar rose after Fed Chairman Jerome Powell's comments on Friday that the United States is facing a long period of slow growth as further rate hikes result.
A strong dollar will constrain broad commodity prices, while undersupply in oil markets will likely continue to bolster the uptrend.
Oil prices were bolstered by hints from Saudi Arabia and the Organization of the Petroleum Exporting Countries and their allies that they could cut production to stabilize the market.
A source told Friday that while the United Arab Emirates is in line with Saudi Arabia's thinking on production policy, Oman's oil ministry said it supports OPEC+'s efforts to maintain market stability.
Meanwhile, sources said last week that if Tehran agrees to revive the nuclear deal, it will consider cutting production to offset any increase in Iran if oil sanctions are lifted.
Violent clashes in the Libyan capital that killed 32 people over the weekend have raised concerns that the country could engage in full-blown conflict and have led to a cut in crude oil supplies in the OPEC member state.
Also, rising gas prices are likely to result in a gas-to-oil switch, which remains a positive trigger for prices.
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