Oil Rises on OPEC Supply Cut Expectations

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 US growth.
US West Texas Intermediate crude futures were up 45 cents, or 0.48%, to $93.51 a barrel, adding to a gain of 2.5% last week, Reuters reported.
Brent crude futures rose 16 cents, or 0.16%, to $101.15 a barrel, extending last week's gain of 4.4%.
"Oil prices are inching higher on hopes of a production cut from OPEC and its allies to restore market balance in response to the revival of Iran's nuclear deal," said Sugandha Sachdeva, vice president of commodity research at Religare Broking.
Strong US oil exports and a bigger-than-expected draw of oil inventory in the last couple of weeks have also eased some demand concerns amid slowdown fears, she added.
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.