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Brent crude futures climbed 71 cents, or 0.76%, to $93.98 a
barrel by 0809 GMT after settling 3 cents lower on Friday.
U.S. West Texas Intermediate crude futures extended gains for a
second session, trading at $90.63 a barrel, up 60 cents, or
0.67%.
"Crude oil prices have started the week on the front foot, as
the market continues to digest Russia's temporary ban on diesel
and gasoline exports, into an already tight market, offset with
the Fed's hawkish message that rates will stay higher for
longer," IG Markets analyst Tony Sycamore said.
Both contracts fell last week, after a hawkish Federal Reserve
stance rattled global financial markets and raised oil demand
concerns. That snapped a three-week rally of more than 10% after
Saudi Arabia and Russia constrained supply by extending
production cuts to the end of the year.
Last week, Moscow temporarily banned gasoline and diesel exports
to most countries in order to stabilise the domestic market,
fanning concerns of low products supply especially for heating
oil as the Northern Hemisphere heads into winter.
In the United States, the number of operating oil rigs fell by
eight to 507 last week, their lowest since February 2022,
despite higher prices, a weekly report from Baker Hughes showed
on Friday.
Expectations of better economic data this week from China, the
world's largest crude importer, also lifted sentiment. However,
analysts flagged that oil prices face technical resistance at
the November 2022 highs that were hit last week.
China's manufacturing sector is expected to return to expansion
in September, with the purchasing manufacturing index forecast
to rise above 50 for the first time since March, Goldman Sachs
analysts said.
In a positive sign, China's oil demand increased 0.3 million
barrels per day (bpd) to 16.3 million bpd last week, partly due
to a gradual recovery in jet fuel demand for international
flights, they added.
(Reporting by Paul Carsten in London and Mohi Narayan and
Florence Tan; Editing by Sonali Paul, Christian Schmollinger and
Louise Heavens)
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