Oil climbs above $121 a barrel as China eases restrictions, EU meets | Reuters
Oil prices climbed above $121 a barrel on Monday, hitting a two-month high as China eased COVID-19 restrictions and traders priced in expectations that the European Union will eventually reach an agreement to ban Russian oil imports.
Trading activity was muted due to a public holiday in the United States.
The Brent crude futures contract for July, which will expire on Tuesday, settled up $2.24, or 1.9%, at $121.67 a barrel. U.S. West Texas Intermediate (WTI) crude futures were up $1.99, or 1.7%, to $117.06 a barrel at 18.03 GMT, extending solid gains made last week.
"One reason being cited for this is the imminent lifting of coronavirus restrictions in Shanghai, which is sparking hopes that oil demand will pick up again in China," analysts at Commerzbank said in a note to clients.
Shanghai announced an end to its two-month-long COVID-19 lockdown, and will allow the vast majority of people in China's largest city to leave their homes and drive their cars from Wednesday. read more
Monday, 30 May 2022
Oil above $120 a barrel as EU meets on Russia sanctions | Reuters
Oil above $120 a barrel as EU meets on Russia sanctions | Reuters
Oil prices climbed above $120 a barrel on Monday, hitting their highest in more than two months as traders priced in expectations that the European Union will eventually reach an agreement to ban Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up $1.35, or 1.1%, at $120.78 a barrel by 1616 GMT. The August Brent contract , which is more active, rose $1.27, or 1.1%, to $116.81 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped $1.11, or 1%, to $116.18 a barrel, extending solid gains made last week.
The EU is meeting on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, which Moscow calls a "special military operation".
Oil prices climbed above $120 a barrel on Monday, hitting their highest in more than two months as traders priced in expectations that the European Union will eventually reach an agreement to ban Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up $1.35, or 1.1%, at $120.78 a barrel by 1616 GMT. The August Brent contract , which is more active, rose $1.27, or 1.1%, to $116.81 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped $1.11, or 1%, to $116.18 a barrel, extending solid gains made last week.
The EU is meeting on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, which Moscow calls a "special military operation".
Mideast Stocks: #AbuDhabi bourse outperforms Gulf peers ahead of Borouge IPO
Mideast Stocks: Abu Dhabi bourse outperforms Gulf peers ahead of Borouge IPO
Stock markets in the Gulf ended higher on Monday, tracking global shares and oil prices higher, with the Abu Dhabi index outperforming the region ahead of its biggest-ever initial public offering (IPO) Borouge.
MSCI's benchmark for global stocks turned positive on the month on bets of a possible slowdown in U.S. monetary tightening and after an easing of COVID restrictions in China.
In Abu Dhabi, the index advanced 2.4%, with First Abu Dhabi Bank gaining 4.5% and Abu Dhabi Commercial Bank adding 4.6%. The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge, its biggest-ever IPO. Last week, Borouge said it set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors.
The Abu Dhabi stock market continued to extend towards its peak as the strong oil prices provided significant support alongside the positive sentiment among investors, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia's benchmark index closed 1.7% higher, led by a 4.3% jump in Al Rajhi Bank and a 4.4% increase in Riyad Bank. Crude prices, a key catalyst for the Gulf's financial market, climbed above $120 a barrel on Monday, hitting their highest in more than two months, as traders waited to see whether a European Union meeting would reach an agreement on banning Russian oil imports.
Dubai's main share index concluded 1.5% higher, with blue-chip developer Emaar Properties climbing 3.5%. Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
The Qatari index edged up 0.3%, with petrochemical maker Industries Qatar adding 1.5% Outside the Gulf, Egypt's blue-chip index rose 0.2%, ending four days of losses, helped by a 3.3% rise in Talaat Mostafa Group Holding.
Stock markets in the Gulf ended higher on Monday, tracking global shares and oil prices higher, with the Abu Dhabi index outperforming the region ahead of its biggest-ever initial public offering (IPO) Borouge.
MSCI's benchmark for global stocks turned positive on the month on bets of a possible slowdown in U.S. monetary tightening and after an easing of COVID restrictions in China.
In Abu Dhabi, the index advanced 2.4%, with First Abu Dhabi Bank gaining 4.5% and Abu Dhabi Commercial Bank adding 4.6%. The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge, its biggest-ever IPO. Last week, Borouge said it set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors.
The Abu Dhabi stock market continued to extend towards its peak as the strong oil prices provided significant support alongside the positive sentiment among investors, said Wael Makarem, senior market strategist at Exness.
Saudi Arabia's benchmark index closed 1.7% higher, led by a 4.3% jump in Al Rajhi Bank and a 4.4% increase in Riyad Bank. Crude prices, a key catalyst for the Gulf's financial market, climbed above $120 a barrel on Monday, hitting their highest in more than two months, as traders waited to see whether a European Union meeting would reach an agreement on banning Russian oil imports.
Dubai's main share index concluded 1.5% higher, with blue-chip developer Emaar Properties climbing 3.5%. Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
The Qatari index edged up 0.3%, with petrochemical maker Industries Qatar adding 1.5% Outside the Gulf, Egypt's blue-chip index rose 0.2%, ending four days of losses, helped by a 3.3% rise in Talaat Mostafa Group Holding.
Watch Outlook for EM Currencies - Bloomberg video
Watch Outlook for EM Currencies - Bloomberg
Carla Slim, MENA Economist at Standard Chartered discusses her views macro factors impacting EM currencies, Egypt's ongoing economic woes and Abu Dhabi's sovereign wealth fund's $10 billion investment. She speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
Carla Slim, MENA Economist at Standard Chartered discusses her views macro factors impacting EM currencies, Egypt's ongoing economic woes and Abu Dhabi's sovereign wealth fund's $10 billion investment. She speaks with Yousef Gamal El-Din on "Bloomberg Daybreak: Middle East." (Source: Bloomberg)
#SaudiArabia Oil Windfall Puzzle Solved: Mideast Newsletter - Bloomberg
Saudi Arabia Oil Windfall Puzzle Solved: Mideast Newsletter - Bloomberg
Investors and economists watching Saudi Arabia's economy over the past few months have been puzzling over something — where is the kingdom's oil windfall going?
With crude prices over a $100 a barrel and production at over 10 million barrels a day, the country is in a rare sweet spot. The kingdom is making about $1 billion from oil exports every day, putting it on track to record its first budget surplus in nearly a decade and the first since the rise of Crown Prince Mohammed bin Salman. How he spends it will be closely watched.
The answer - he won't. Or at least not yet. Finance Minister Mohammed Al-Jadaan said this time the surplus will accumulate in a government current account held at the central bank until the end of the year. After that, it'll be used to replenish foreign currency reserves with any extra potentially transferred to sovereign wealth funds - including the powerful Public Investment Fund that’s become the main engine of state-investment in the domestic economy.
It's a key part of Prince Mohammed's plan to break the boom-bust cycle that plagued Saudi Arabia in the past. Previous budget surpluses were spent on public sector salaries, large infrastructure projects, and big chunks of it were put into low yielding but safe investments like US treasuries. Oil surpluses created an economy whose fortunes rose and fell with the oil price, rather than a rainy day fund.
Prince Mohammed wants to shake off the oil curse, but avoiding it will be tough. Global inflation is rising, the Saudi banking system is struggling with the tightest liquidity conditions in years, and external investor backing for the Prince's biggest initiatives to wean the economy off oil has yet to arrive. The temptation when billions of dollars are flooding into government accounts will be to try and tackle these problems by throwing money at them.
Investors and economists watching Saudi Arabia's economy over the past few months have been puzzling over something — where is the kingdom's oil windfall going?
With crude prices over a $100 a barrel and production at over 10 million barrels a day, the country is in a rare sweet spot. The kingdom is making about $1 billion from oil exports every day, putting it on track to record its first budget surplus in nearly a decade and the first since the rise of Crown Prince Mohammed bin Salman. How he spends it will be closely watched.
The answer - he won't. Or at least not yet. Finance Minister Mohammed Al-Jadaan said this time the surplus will accumulate in a government current account held at the central bank until the end of the year. After that, it'll be used to replenish foreign currency reserves with any extra potentially transferred to sovereign wealth funds - including the powerful Public Investment Fund that’s become the main engine of state-investment in the domestic economy.
It's a key part of Prince Mohammed's plan to break the boom-bust cycle that plagued Saudi Arabia in the past. Previous budget surpluses were spent on public sector salaries, large infrastructure projects, and big chunks of it were put into low yielding but safe investments like US treasuries. Oil surpluses created an economy whose fortunes rose and fell with the oil price, rather than a rainy day fund.
Prince Mohammed wants to shake off the oil curse, but avoiding it will be tough. Global inflation is rising, the Saudi banking system is struggling with the tightest liquidity conditions in years, and external investor backing for the Prince's biggest initiatives to wean the economy off oil has yet to arrive. The temptation when billions of dollars are flooding into government accounts will be to try and tackle these problems by throwing money at them.
#AbuDhabi's Borouge draws $80 bln in demand for its IPO -sources | Reuters
Abu Dhabi's Borouge draws $80 bln in demand for its IPO -sources | Reuters
Abu Dhabi-based petrochemicals company Borouge has attracted demand of $80 billion for its initial public offering, two sources told Reuters, as retail investors snapped up shares despite volatile global markets.
The company, which is jointly owned by Abu Dhabi National Oil Company and Austria's Borealis, has attracted orders of $63 billion from institutional investors, said the sources, declining to be named as the matter is not public.
Borouge is due to list on the Abu Dhabi stock exchange on Friday.
Demand for the retail tranche, which includes employees in the company, totalled $17 billion, the highest for an IPO in the United Arab Emirates in almost two decades.
Asset managers BlackRock and Fidelity were among institutional investors taking part in the offering, the sources said.
Borouge and ADNOC declined to comment when contacted by Reuters on Monday. BlackRock and Fidelity did not immediately respond to a request for comment.
Abu Dhabi-based petrochemicals company Borouge has attracted demand of $80 billion for its initial public offering, two sources told Reuters, as retail investors snapped up shares despite volatile global markets.
The company, which is jointly owned by Abu Dhabi National Oil Company and Austria's Borealis, has attracted orders of $63 billion from institutional investors, said the sources, declining to be named as the matter is not public.
Borouge is due to list on the Abu Dhabi stock exchange on Friday.
Demand for the retail tranche, which includes employees in the company, totalled $17 billion, the highest for an IPO in the United Arab Emirates in almost two decades.
Asset managers BlackRock and Fidelity were among institutional investors taking part in the offering, the sources said.
Borouge and ADNOC declined to comment when contacted by Reuters on Monday. BlackRock and Fidelity did not immediately respond to a request for comment.
#Israel's sovereign wealth fund to begin on June 1 -FinMin | Reuters
Israel's sovereign wealth fund to begin on June 1 -FinMin | Reuters
Israel's long-delayed sovereign wealth fund can start operating on June 1 now that taxes on profits from natural gas and other resources have passed the 1 billion shekels ($301 million) minimum, the Finance Ministry and Tax Authority said on Monday.
Finance Minister Avigdor will sign an order to transfer 1.14 billion shekels, levies accumulated to date, to the fund on Wednesday, the ministry said.
Israel's long-delayed sovereign wealth fund can start operating on June 1 now that taxes on profits from natural gas and other resources have passed the 1 billion shekels ($301 million) minimum, the Finance Ministry and Tax Authority said on Monday.
Finance Minister Avigdor will sign an order to transfer 1.14 billion shekels, levies accumulated to date, to the fund on Wednesday, the ministry said.
Oil prices climb above $120 a barrel ahead of EU meeting on Russia sanctions | Reuters
Oil prices climb above $120 a barrel ahead of EU meeting on Russia sanctions | Reuters
Oil prices climbed above $120 a barrel on Monday, hitting their highest in more than two months, as traders waited to see whether a European Union meeting would reach an agreement on banning Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up 59 cents, or 0.5%, at $120.02 a barrel at 1100 GMT. The August Brent contract , which is more active, rose 74 cents, or 0.6%, to $116.30 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped 65 cents, or 0.6%, to $115.72 a barrel, extending solid gains made last week.
The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, actions which Moscow calls a "special military operation".
Oil prices climbed above $120 a barrel on Monday, hitting their highest in more than two months, as traders waited to see whether a European Union meeting would reach an agreement on banning Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up 59 cents, or 0.5%, at $120.02 a barrel at 1100 GMT. The August Brent contract , which is more active, rose 74 cents, or 0.6%, to $116.30 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped 65 cents, or 0.6%, to $115.72 a barrel, extending solid gains made last week.
The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, actions which Moscow calls a "special military operation".
Analysis: How the Ukraine conflict is reshaping global oil markets | Reuters
Analysis: How the Ukraine conflict is reshaping global oil markets | Reuters
Russia's invasion of Ukraine has reconfigured the global oil market, with African suppliers stepping in to meet European demand and Moscow, stung by Western sanctions, increasingly tapping risky ship-to-ship transfers to get its crude to Asia.
The reroutings mark the biggest supply-side shakeup of the global oil trade since the U.S. shale revolution altered the shape of the market around a decade ago and suggest Russia will be able to navigate a European Union (EU) oil ban, provided Asia and China continue to buy its crude.
Sanctions imposed on Moscow after the conflict in Ukraine kicked off in February, including a U.S. ban on its oil imports, have prompted Russia to pivot away from Europe, where its crude is shunned, to customers in India and China who are picking up cargoes at a steep discount, according to industry data and traders. read more
Russian exports were back to pre-invasion levels in April, according to data from the Paris-based International Energy Agency and oil prices have stabilised around $110 after hitting a 14-year high above $139 a barrel in March.
Russia's invasion of Ukraine has reconfigured the global oil market, with African suppliers stepping in to meet European demand and Moscow, stung by Western sanctions, increasingly tapping risky ship-to-ship transfers to get its crude to Asia.
The reroutings mark the biggest supply-side shakeup of the global oil trade since the U.S. shale revolution altered the shape of the market around a decade ago and suggest Russia will be able to navigate a European Union (EU) oil ban, provided Asia and China continue to buy its crude.
Sanctions imposed on Moscow after the conflict in Ukraine kicked off in February, including a U.S. ban on its oil imports, have prompted Russia to pivot away from Europe, where its crude is shunned, to customers in India and China who are picking up cargoes at a steep discount, according to industry data and traders. read more
Russian exports were back to pre-invasion levels in April, according to data from the Paris-based International Energy Agency and oil prices have stabilised around $110 after hitting a 14-year high above $139 a barrel in March.
Foreign demand to keep #Dubai property prices on steady upward course: Reuters poll | Reuters
Foreign demand to keep Dubai property prices on steady upward course: Reuters poll | Reuters
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
With an economic rebound propelled by higher energy prices and a revival in trade and tourism, the Dubai property market shrugged off a long streak of falls last year and has held on to upbeat momentum since then.
The latest May 11-26 Reuters poll of 13 property market analysts showed a median rise of 7.5% in Dubai house prices in 2022, unchanged from the previous poll taken two months ago.
Market sentiment, lifted by the pandemic easing, "coupled with the successful hosting of the World Expo, the reopening of travel corridors...continues to underpin the market's rebound," said Faisal Durrani, head of Middle East research at Knight Frank.
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
With an economic rebound propelled by higher energy prices and a revival in trade and tourism, the Dubai property market shrugged off a long streak of falls last year and has held on to upbeat momentum since then.
The latest May 11-26 Reuters poll of 13 property market analysts showed a median rise of 7.5% in Dubai house prices in 2022, unchanged from the previous poll taken two months ago.
Market sentiment, lifted by the pandemic easing, "coupled with the successful hosting of the World Expo, the reopening of travel corridors...continues to underpin the market's rebound," said Faisal Durrani, head of Middle East research at Knight Frank.
#UAE’s Utico Hires Banks for Share Sale, Joining #Dubai’s IPO Push - Bloomberg
UAE’s Utico Hires Banks for Share Sale, Joining Dubai’s IPO Push - Bloomberg
United Arab Emirates-based utility Utico FZC hired banks including Goldman Sachs, HSBC Holdings and Standard Chartered to advise on a potential IPO in Dubai this year, joining a steady stream of companies tapping the Gulf equity markets.
The company is seeking a primary offering on the Dubai Financial Market and may consider a dual listing, according to a statement. Other banks involved in the IPO are Emirates NBD, First Abu Dhabi Bank and Citigroup.
As part of the process, the power and water utility is also planning a share buyback, it said.
“As part of the IPO preparations, shareholding changes are underway where consolidation is ongoing,” said Richard Menezes, founder and managing director of Utico. “Talks are ongoing with a major fund and an investor to acquire the firm 100% from its current investors and take it for an IPO in Q4 this year.”
United Arab Emirates-based utility Utico FZC hired banks including Goldman Sachs, HSBC Holdings and Standard Chartered to advise on a potential IPO in Dubai this year, joining a steady stream of companies tapping the Gulf equity markets.
The company is seeking a primary offering on the Dubai Financial Market and may consider a dual listing, according to a statement. Other banks involved in the IPO are Emirates NBD, First Abu Dhabi Bank and Citigroup.
As part of the process, the power and water utility is also planning a share buyback, it said.
“As part of the IPO preparations, shareholding changes are underway where consolidation is ongoing,” said Richard Menezes, founder and managing director of Utico. “Talks are ongoing with a major fund and an investor to acquire the firm 100% from its current investors and take it for an IPO in Q4 this year.”
Mideast Stocks: #AbuDhabi leads major Gulf bourses higher ahead of Borouge IPO
Mideast Stocks: Abu Dhabi leads major Gulf bourses higher ahead of Borouge IPO
Major stock markets in the Gulf rose in early trade on Monday, in line with Asian shares and oil prices, with the Abu Dhabi index leading the gains ahead of Borouge's initial public offering (IPO).
In Abu Dhabi, equities were boosted by a 4.4% jump in First Abu Dhabi Bank and a 4.3% increase in Abu Dhabi Commercial Bank.
The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge, its biggest-ever IPO.
Last week, Borouge said it set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors.
Among other gainers, ADNOC Drilling gained 2.9% as the company announced acquisition of two additional premium offshore jackup rigs.
Saudi Arabia's benchmark index advanced 1.6%, with Al Rajhi Bank adding 3.4%, while Jabal Omar Development climbed 4.6% after the developer recorded a decrease in accumulated losses.
Elsewhere, Saudi Home Loans jumped 3.7% after announcing an annual dividend of 0.774 riyal per share.
Oil prices, a key catalyst for the Gulf's financial markets, rose, hitting their highest in more than two months, as traders waited to see whether the European Union would reach an agreement on banning Russian oil imports.
Dubai's main share index rose 1.5%, led by blue-chip developer Emaar Properties leaping 3.4%.
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
The Qatari index inched up 0.1%.
Qatar's gross domestic product (GDP) should grow 3.5% in 2022, Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al-Thani told a conference on Sunday in Doha.
Fitch Ratings in April forecast Qatar's GDP would grow 3.2% in 2022, from 1.6% in 2021, reflecting increased output from the soccer World Cup that the country is hosting in November and December and the post-pandemic recovery.
Major stock markets in the Gulf rose in early trade on Monday, in line with Asian shares and oil prices, with the Abu Dhabi index leading the gains ahead of Borouge's initial public offering (IPO).
In Abu Dhabi, equities were boosted by a 4.4% jump in First Abu Dhabi Bank and a 4.3% increase in Abu Dhabi Commercial Bank.
The Abu Dhabi National Oil Company (ADNOC) is selling 10% of its petrochemicals joint venture with Austria's Borealis, known as Borouge, its biggest-ever IPO.
Last week, Borouge said it set the offer price for its IPO, which shows it could raise about $2 billion in the deal, and secured seven cornerstone investors.
Among other gainers, ADNOC Drilling gained 2.9% as the company announced acquisition of two additional premium offshore jackup rigs.
Saudi Arabia's benchmark index advanced 1.6%, with Al Rajhi Bank adding 3.4%, while Jabal Omar Development climbed 4.6% after the developer recorded a decrease in accumulated losses.
Elsewhere, Saudi Home Loans jumped 3.7% after announcing an annual dividend of 0.774 riyal per share.
Oil prices, a key catalyst for the Gulf's financial markets, rose, hitting their highest in more than two months, as traders waited to see whether the European Union would reach an agreement on banning Russian oil imports.
Dubai's main share index rose 1.5%, led by blue-chip developer Emaar Properties leaping 3.4%.
Dubai house prices are set to mostly rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.
The Qatari index inched up 0.1%.
Qatar's gross domestic product (GDP) should grow 3.5% in 2022, Central Bank Governor Sheikh Bandar bin Mohammed bin Saoud Al-Thani told a conference on Sunday in Doha.
Fitch Ratings in April forecast Qatar's GDP would grow 3.2% in 2022, from 1.6% in 2021, reflecting increased output from the soccer World Cup that the country is hosting in November and December and the post-pandemic recovery.
Oil prices climb to over 2-month highs ahead of EU meeting on Russia sanctions | Reuters
Oil prices climb to over 2-month highs ahead of EU meeting on Russia sanctions | Reuters
Oil prices rose on Monday, hitting their highest in more than two months, as traders waited to see whether a planned European Union meeting would reach an agreement on banning Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up 54 cents, or 0.5%, at $119.97 a barrel at 0912 GMT. The August Brent contract , which is more active, rose 69 cents, or 0.6%, to $116.25 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped 62 cents, or 0.5%, to $115.69 a barrel, extending solid gains made last week.
The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, actions which Moscow calls a "special military operation".
Oil prices rose on Monday, hitting their highest in more than two months, as traders waited to see whether a planned European Union meeting would reach an agreement on banning Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up 54 cents, or 0.5%, at $119.97 a barrel at 0912 GMT. The August Brent contract , which is more active, rose 69 cents, or 0.6%, to $116.25 a barrel.
U.S. West Texas Intermediate (WTI) crude futures jumped 62 cents, or 0.5%, to $115.69 a barrel, extending solid gains made last week.
The EU is due to meet on Monday and Tuesday to discuss a sixth package of sanctions against Russia for its invasion of Ukraine, actions which Moscow calls a "special military operation".