Crude prices rose solidly Monday, with Brent hitting a three-month high on tight supply concerns and expectations of stimulus measures to boost global economic growth, analysts said.
Brent crude reached $114.70 a barrel to reach the highest level since early May. Brent North Sea crude for delivery in September later stood at $114.47 in London midday deals, up $1.52 compared with Friday's close.
New York's main contract, light sweet crude for September, gained 64 cents to $93.51.
“As the new week begins, Brent has risen to a three-month high,” said Commerzbank analyst Carsten Fritsch.
“Driving the price upwards are still the risks to supply such as the decline in North Sea production (due to maintenance) and the tensions in the Near and Middle East.”
A collision Sunday between a US guided-missile destroyer and a Japanese-owned oil tanker near the strategic Strait of Hormuz waterway rattled nerves among investors concerned over potential supply disruptions.
Around one fifth of the world's traded oil passes through the narrow strait, which connects the oil-rich Gulf to the Indian Ocean.
Tension spiked in the area earlier this year as Iran threatened to block the waterway in retaliation for a Western boycott of its oil exports.
Traders on Monday added that crude was winning support from hopes of further cash stimulus to boost the global economy.
The European Central Bank is also expected to restart its bond-buying scheme to support under-pressure economies such as Spain and Italy.
In the US, investors are expecting the Federal Reserve to unveil its own drive to pump cash into the economy, while poor trade figures from China last week increased the likelihood Beijing will also intervene to kickstart growth. - Sapa-AFP