LONDON: Crude oil rose on Monday as supply concerns driven by lower OPEC (Organisation of the Petroleum Exporting Countries) output, unrest in Libya and sanctions on Russia outweighed fears of demand-sapping global recession.
Euro zone inflation hit yet another record high in June, strengthening the case for rapid European Central Bank rate increases, while US consumer sentiment hit a record low, Reuters reported.
Brent crude rose $1.55, or 1.4 per cent, to $113.18 a barrel by 1318 GMT after falling more than $1 in early trade.
US West Texas Intermediate (WTI) crude rose $1.34, or 1.2 per cent, to $109.77.
The Organisation of the Petroleum Exporting Countries (OPEC) missed a target to boost output in June, a Reuters survey found.
In OPEC member Libya, authorities declared force majeure at Es Sidr and Ras Lanuf ports as well as the El Feel oilfield on Thursday, saying oil output was down by 865,000 barrels per day (bpd).
Meanwhile, Ecuador's production has been hit by more than two weeks of unrest that has caused the country to lose nearly 2 million barrels of output, state-run oil company Petroecuador said.
Adding to potential supply woes, a strike this week in Norway could cut supply from Western Europe's largest oil producer and cut overall petroleum output by about 8
per cent.