Crude oil futures ended higher on Monday amid optimism about the outlook for demand during the summer driving season, and on likely supply disruptions due to the tensions in the Middle East. Reports about Ukrainian drone attacks on Russian refineries, and tighter U.S. sanctions on Iran raised concerns about supplies, and supported oil prices. Meanwhile, rising tensions on the Israel-Lebanon border has raised concerns about the outlook for oil supplies. Also, Israel and the Iran-backed Hezbolloah have been reportedly continuing to trade threats of war. Further, a weaker dollar contributed as well to the rise in oil prices.
Benchmark U.S. crude oil futures for August delivery rose $0.90 or about 1.1% to $81.63 per barrel on the New York Mercantile Exchange. Brent crude for August delivery gained $0.77 cents or 0.9% to $86.01 per barrel on London's Intercontinental Exchange.