Oil prices jump as soft dollar, tight supplies support

Oil prices extended gains on Monday, propped up by a weaker dollar and tight supplies that offset concerns about recession and the prospect of widespread COVID-19 lockdowns in China again reducing fuel demand, Reuters reported.

Brent crude futures for September settlement rose $2.54, or 2.5%, to $103.70 a barrel by 0648 GMT, after a 2.1% gain on Friday.

U.S. West Texas Intermediate (WTI) crude futures for August delivery gained $2.31, or 2.4%, to $99.90 a barrel, after climbing 1.9% in the previous session.

Last week, Brent and WTI posted their biggest weekly drops in about a month on fears of a recession that will hit oil demand. Mass COVID testing exercises continued in parts of China this week, raising oil demand concerns at the world’s second-largest oil consumer.