Aug 29, 2022 02:45AM ET
By: AnalysisWatch
Oil prices rose 1% on Monday as expectations that OPEC would cut output if needed to support prices, combined with the conflict in Libya and rising demand amid surging natural gas prices in Europe, helped offset a poor growth outlook in the US.
U.S. West Texas Intermediate crude futures rose 45 cents, or 0.48 percent, to $93.51 a barrel by 0632 GMT, adding to last week's 2.5 percent gain.
Brent crude futures rose 16 cents, or 0.16 percent, to $101.15 a barrel, adding to last week's 4.4 percent gain.
Both benchmark contracts traded lower earlier in the day as the dollar rose following Friday's sharp comments by Federal Reserve Chairman Jerome Powell that the U.S. faces a prolonged period of slow growth amid further interest rate hikes.
Oil prices were supported by hints from Saudi Arabia and other members of the Organization of Petroleum Exporting Countries and allies, collectively called OPEC+, that they could cut output to balance the market.
A Reuters source said on Friday that the United Arab Emirates echoed Saudi Arabia's thinking on output policy, while Oman's oil ministry also said it supported OPEC+ efforts to maintain market stability.
Last week, sources said OPEC would consider cutting output to offset a possible increase by Iran if oil sanctions were lifted if Tehran agreed to revive the nuclear deal.
Heavy clashes in Libya's capital, which killed 32 people over the weekend, have raised fears that the country could descend into full-scale conflict, leading to a disruption in OPEC crude supplies.