Oil settles higher, Brent posts monthly gains of over 13%

Oil drilling rigs

Oil settled higher on Monday, recording the best monthly gains in more than a year as investors evaluate oil supply and demand dynamics in global markets.

Data from the Energy Information Administration (EIS) showed that fuel demand rose to 20.78 million barrels per day (bpd) in May, the highest since August 2019.

Further, a Reuters survey showed that OPEC oil output fell this month to 27.34 million bpd, a drop of 840,000 bpd compared to June, the lowest level since September 2021.

October Brent contract rose 1.2%, or $1.02, to $85.43 a barrel. The US West Texas Intermediate crude (WTI) for September delivery ended 1.5% up, or $1.22, at $81.80 a barrel.