Oil prices climb on weak dollar, supply concerns

Oil prices climbed on Monday as a weaker dollar and supply concerns ahead of the European Union embargo on Russian oil in December offset fears of a global recession that could dampen fuel demand. Brent crude futures rose 60 cents, or 0.7 per cent, to $91.95 a barrel by 0330 GMT after settling up 0.5pc on Friday. US West Texas Intermediate crude was at $85.50 a barrel, up 39 cents, or 0.5pc. The front-month contract expires on Tuesday. Both contracts, which slid more than 1pc last week on concerns that another interest rate hike by the US Federal Reserves could slow global growth, were supported by a weaker dollar which came off multi-year highs. A weaker US dollar makes dollar-denominated commodities less expensive for holders of other currencies. “The market still has the start of European sanctions on Russian oil hanging over it. As supply is disrupted in early December, the market is unlikely to see any quick response from US producers,” ANZ analysts said on Monday.