Oil extended gains as tensions in the Persian Gulf remained elevated after Iran seized a British tanker, and Libyan production fell after an unidentified group reportedly shut the country's largest field.
The UK demanded the immediate release of the Stena Impero, which was seized by the Islamic Republic in the Strait of Hormuz on Friday, but Defense Minister Tobias Ellwood said in a Sky News Interview that he wanted to de-escalate the situation. Production at Libya's Sharara oil field was said to be gradually resuming after a force majeure was declared following the closure. Futures in New York rose as much as 1.1% after closing up 0.6% on Friday.
West Texas Intermediate for August delivery climbed 44 cents, or 0.8%, to $56.07 a barrel on the New York Mercantile Exchange as of 11:56 in Singapore after gaining as much as 60 cents earlier. The contract fell 7.6% last week.
Libyan crude production fell to about 1 million barrels a day, the lowest in about five months, after an unidentified group reportedly closed a valve and shut down the North African nation's biggest oil field. While the valve has been re-opened, the declaration of force majeure removed 290,000 barrels a day, the state-run National Oil Corp. said in a statement.