Oil rises on prospect of OPEC supply cut, demand growth

Oil rises on prospect of OPEC supply cut, demand growth

Oil prices rose 1% on Monday, as expectations that OPEC would cut output if needed to support prices, coupled with conflict in Libya and rising demand amid soaring natural gas prices in Europe, helped offset a dire outlook for U.S. growth.

U.S. West Texas Intermediate (WTI) crude futures were up 45 cents, or 0.48%, to $93.51 a barrel by 0632 GMT, adding to a gain of 2.5% last week.

Brent crude futures rose 16 cents, or 0.16%, to $101.15 a barrel, extending last week's gain of 4.4%.

Both benchmark contracts had traded lower earlier in the day as the dollar climbed after Friday's blunt comments from Federal Reserve Chairman Jerome Powell that the United States faced a prolonged period of slow growth amid further rate hikes.

Oil prices have been buoyed by hints from Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, that they could cut output in order to balance the market.

Sources said last week OPEC would consider cutting output to offset any increase from Iran, should oil sanctions be lifted if Tehran agrees to revive a nuclear deal.

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