Oil prices rise on weak dollar, supply concerns

Oil prices rise during early Asian trade on Monday as a weaker dollar and supply concerns ahead of the European Union embargo on Russian oil in December offset fears of an international recession that could reduce fuel demand. After closing up 0.5% on Friday, Brent crude futures increased $1.15, or 1.3%, to $92.50 a barrel. U.S. West Texas Intermediate crude was up $1.05 or 1.2% at $86.16 per barrel. On Tuesday, the front-month contract expires.

Both contracts were helped by a weaker dollar that was coming off multi-year highs. Last week, both contracts fell more than 1% on worries that another interest rate hike by the Federal Reserve could hamper global growth. Dollar-denominated goods cost less for holders of foreign currencies when the U.S. dollar is weaker.

In accordance with its OPEC quota, the Gulf state currently exceeds 2.8 million barrels of oil production per day. A day after being suspended owing to a spill that has since been contained, Basrah Oil Company said that oil loading and exporting activities from Iraq’s Basrah oil terminal are restored to their regular rates on Saturday. U.S. energy companies last week added oil and natural gas rigs for the first time in three weeks, signaling increased U.S. supply.

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