U.S. crude oil rose on Monday, hovering around $94 a barrel on support from strong U.S. economic data last week, while Brent edged up after nearing a two-year low last week.
With U.S. refinery maintenance season around the corner, analysts said prices for U.S. crude, or West Texas Intermediate (WTI), may come under pressure. Gasoline prices have jumped around 6 percent in the last two weeks due to refinery maintenance shutdowns, and strength in gasoline has supported crude prices. Still, the contract jumped after data showed U.S. spending and income rose strongly last month.
"I think demand by U.S. refiners to make product to export is definitely supporting WTI prices," said Gene McGillian, an analyst at Tradition Energy in Stamford, Connecticut. "Looking overseas, reports that Libya's production has climbed back...means we don't have supply disruptions."
U.S. crude for November delivery jumped $1.03 to end at $94.57 a barrel. Meanwhile, Brent crude rose 20 cents to above $97 a barrel. Brent's premium over WTI narrowed to the smallest in 12 months, touching $2.91 a barrel, before widening back to $2.97 a barrel.