Oil jumps boosted by weaker dollar and tight supplies

Oil prices extended gains on Monday, boosted by a weaker dollar and tight supplies that offset concerns about a recession and the prospect of widespread Covid-19 lockdowns in China again reducing fuel demand.

Brent crude futures for September settlement rose by $2.14, or 2.1%, to $103.30 a barrel by 1100 GMT, having gained 2.1% on Friday.

U.S. West Texas Intermediate (WTI) crude futures for August delivery were up $1.72, or 1.8%, at $99.31 after rising by 1.9% in the previous session.

The U.S. dollar retreated from multi-year highs on Monday, supporting prices of commodities ranging from gold to oil. A weaker dollar makes dollar-denominated commodities more affordable for holders of other currencies.

Both Brent and WTI last week registered their biggest weekly declines for about a month on fears of a recession that would hit oil demand. Mass COVID-testing exercises continue in parts of China this week, raising concerns over oil demand from the world's second-largest oil consumer.

However, supplies remain tight. As expected, U.S. President Joe Biden's trip to Saudi Arabia failed to yield any pledge from the top OPEC producer to boost oil supply.

Biden wants Gulf oil producers to step up output to help to lower oil prices and drive down inflation.

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