Oil settles higher on weaker dollar and Russian supply disruptions
Global benchmark Brent crude oil settled 1% higher on Monday, as concerns mounted that intensifying airstrikes in Russia and Ukraine could lead to supply disruptions, and as a weaker dollar lent additional support.
Brent crude futures settled up 67 cents, or 1%, at $68.15 a barrel. The U.S. benchmark, the West Texas Intermediate futures contract , was up 67 cents, or 1.1% at $64.68 by 2:15 p.m. ET.
There will be no settlement for WTI futures on Monday due to Labor Day holiday in the U.S. Trading volume for both Brent and WTI was also muted due to that reason.
Ukrainian President Volodymyr Zelenskiy on Sunday vowed to retaliate against Russian drone strikes on power facilities in his country's north and south, and ordered more strikes deep inside Russia.
Three and a half years into the war, both Russia and Ukraine have intensified airstrikes in recent weeks, even as efforts are underway to resolve the crisis.
Elsewhere, the U.S. labour market report this week will give a read on the economy's health and test investor confidence that interest rate cuts are coming soon, a view that has strengthened appetite for riskier assets such as commodities.
Ahead of the data, the dollar was close to a five-week low on Monday, making oil less expensive for buyers using other currencies.
Investors were also focused on Beijing, where Chinese President Xi Jinping, Russian counterpart Vladimir Putin and Indian Prime Minister Narendra Modi are attending a regional summit.
Also on the radar was an OPEC+ meeting on September 7.
Source : Reuters
