International Oil Prices Close Higher as US Dollar Weakens and Concerns Grow Over Russian Supply Disruptions

Brent crude oil, the global benchmark, closed up 1% on Monday as market concerns over escalating Russia-Ukraine conflict raised fears of supply disruptions, while a weaker US dollar provided additional support.

Brent crude oil futures closed up 67 cents, or 1%, at $68.15 per barrel. As of 2:15 p.m. Eastern Time, US benchmark West Texas Intermediate crude oil futures rose 67 cents, or 1.1%, to $64.68 per barrel.

Due to the US Labor Day holiday, West Texas Intermediate crude oil futures will not be settled on Monday. As a result, trading volumes for both Brent crude and West Texas Intermediate crude have declined.

The market remains concerned about Russia's oil supply. According to tanker tracking data cited by ANZ analysts, weekly oil shipments from Russian ports have fallen to a four-week low of 2.72 million barrels per day.

In addition, the US labor market report to be released this week will reflect the health of the US economy and test investors' confidence in the upcoming interest rate cuts. Expectations of rate cuts have increased investor interest in riskier assets such as commodities.

Prior to the data release, the US dollar hovered near a five-week low on Monday, making it cheaper for buyers using other currencies to purchase oil.