Oil extends gains for fifth session supported by Mideast tensions

Oil prices rose for a fifth consecutive session on Monday, holding on to last week’s more than 3% gains, as U.S. recession fears eased while geopolitical tensions in the Middle East supported prices, Reuters reported.

Brent crude futures climbed 22 cents, or 0.3%, to $79.88 a barrel by 0458 GMT, while U.S. West Texas Intermediate crude futures rose 36 cents, or 0.5%, to $77.20.

“Support is coming from last week’s better-than-expected U.S. data which eased fears of a U.S. recession,” IG markets analyst Tony Sycamore said.

“The market is still waiting for Iran’s response,” ING’s head of commodities research Warren Patterson said.

Brent ended last week up more than 3.5% on the week, while WTI gained more than 4%, on supportive economic data and increased hopes of a U.S. interest rate cut.

Three U.S. central bankers said last week that inflation appeared to be cooling enough for the Federal Reserve to cut interest rates as soon as next month.

China’s consumer prices rose faster than expected in July, and U.S. weekly jobless claims fell more than expected last week.