On Monday, Brent crude rose above $114 per barrel. This was the highest gain in more than three months after comments of Israel on stopping Iran from proceeding with a disputed nuclear program stoked worries about a disruption in supply from the region.
The Prime Minister of Israel, Benjamin Netanyahu said that most threats to security of the country were "dwarfed" by the prospect of Iran obtaining nuclear weaponry. These comments overshadowed recent forecasts of a further slowdown in growth of oil demand because of a weak economic outlook in the United States and Europe.
Brent crude, which hit $114.28 -- its highest since May 4, traded 41 cents up at $113.36 a barrel by 0635 GMT, gaining for six out of the past seven sessions. U.S. oil rose 18 cents to $93.05, after ending 49 cents lower at $92.87.
"We are seeing prices rise despite weak growth outlook numbers on Friday," said Ben Le Brun, a Sydney-based market analyst at OptionsXpress. "The Israeli comments, what you see in Israeli media, is a concern. A major concern." "We will continue to see tensions in the Middle East underpin oil prices," Le Brun said.
A decline in North Sea crude output is also supporting growing prices of Brent Crude. "An escalation in geopolitical risks in the Middle East and supply disruption risks from the North Sea has been supporting Brent," analysts at ANZ said in a research report.