Oil swings higher as tight supplies overshadow demand destruction | Reuters

Oil swings higher as tight supplies overshadow demand destruction | Reuters

Oil prices swung higher in volatile trading on Monday, as traders focused on tight supplies over slowing global economic growth.

Brent crude futures settled up $1.01, or 0.9%, at $114.13 a barrel. The global benchmark tumbled 7.3% last week for its first weekly fall in five.

U.S. West Texas Intermediate crude last traded up 61 cents, or 0.56%, at $110.17 in subdued trade on the Juneteenth U.S. holiday. Front-month prices slumped 9.2% last week for the first decline in eight weeks.

"We've got two really competing narratives happening," said Houston oil consultant Andrew Lipow. "One is sanctions on Russian supplies (supporting prices). On the other hand, we see the high prices resulting in some demand destruction."

Brent prices on Monday touched their lowest in a month before recovering.

"Supplies will remain tight and continue supporting high oil prices. The norm for ICE Brent is still around the $120-mark," said PVM analyst Stephen Brennock.