Oil rises as dollar strength eases, but Fed weighs | Reuters

Oil rises as dollar strength eases, but Fed weighs | Reuters

Oil prices rose on Monday, bolstered by a slightly weaker U.S. dollar and stronger equity markets in a session that seesawed between supply fears and expectations that rise in U.S. interest rates would weaken fuel demand.

Brent crude futures for September settlement rose 68 cents, or 0.66%, to $103.88 a barrel by 1402 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 85 cents, or 0.9%, to $95.55 a barrel.

"A slightly weaker U.S. dollar and improving equity markets are supporting oil," UBS oil analyst Giovanni Staunovo said on Monday. (.STOXX)

Oil futures have been volatile in recent weeks as traders have tried to reconcile the possibilities of further interest rate hikes, which could limit economic activity and thus cut fuel demand growth, against tight supply from disruptions in trading of Russian crude because of Western sanctions amid the Ukraine conflict.