LONDON—Oil futures rose more than $1 on Monday, extending gains after four weeks of decline on demand worries and concern over Middle East supply disruption owing to the Israel-Hamas conflict.
Brent crude futures rose $1.18 to $81.79 a barrel by 1132 GMT. U.S. West Texas Intermediate crude was up $1.05 at $76.94.
The front-month December WTI contract expires later on Monday while the more active January futures gained $1.15 to $77.19.
Oil prices have dropped by almost 20 percent since late September while prompt inter-month spreads for Brent and WTI slipped into contango last week. In a contango market prompt prices are lower than those in future months, signalling sufficient supply.
Investors are also keeping an eye on Russian crude oil trade after Washington imposed sanctions on three ships that have sent Sokol crude to India.
On Friday Moscow lifted a ban on gasoline exports which could add to global supplies of the motor fuel. That came after Russia scrapped most restrictions on exports of diesel last month.
U.S. energy companies last week added oil and gas rigs for the first time in three weeks, energy services business Baker Hughes said on Friday. The oil and gas rig count serves as an early indicator of future output.
Meanwhile, U.S. oil refiners are expected to have 264,000 barrels per day (bpd) of capacity offline for the week ending Nov. 24, increasing available refining capacity by 559,000 bpd, research company IIR Energy said on Monday.
In the Middle East, U.S., and Israeli officials said a deal to free some of the hostages held in the besieged Gaza enclave was edging closer despite fierce fighting.
