Oil prices settled up about $2 a barrel on Monday on supply jitters, as a key pipeline supplying the United States closed and Russia threatened a production cut even as China's loosening COVID-19 restrictions bolstered the fuel demand outlook, Trend reports citing Reuters.
Brent crude futures settled at $77.99 a barrel, gaining $1.89 or 2.5%. U.S. West Texas Intermediate crude settled at $73.17 a barrel, rising $2.15, or 3%.
Last week, Brent and WTI fell to their lowest since December 2021 as investors worried a possible global recession could hurt oil demand.
The potential of a prolonged outage of TC Energy Corp's (TRP.TO) Canada-to-U.S. Keystone crude oil pipeline helped turn prices around.
"Keystone Pipeline repair appears to be taking longer than expected (and) upping the possibility of further stock draws at Cushing," said Jim Ritterbusch at Ritterbusch and Associates.
Traders worried about how long it would take to clean up and restart the Keystone oil pipeline after more than 14,000 barrels of oil leaked last week, the largest U.S. crude oil spill in nearly a decade.