U.S. crude oil price rose over 2 percent on Monday as investors hoped that the Federal Reserve could on Friday step into monetary stimulus to boost U.S. economy.
Ben Bernanke, the Fed's chairman, is scheduled to deliver a speech on Friday. Crude investors were expecting that the central bank will signal on new monetary stimulus steps to lift U.S. sluggish economy, which is facing increasing recession risk.
Besides the optimistic sentiment, the bargain-hunting after the steep fall last week also offered rising steam to crude prices.
But in Libya, the rebels have already taken control of the capital Tripoli and the Libya's six-month civil war could be close to an end. The suspended oil supplies from the OPEC member state were hoped to be restored soon. More supplies expectation pushed the Brent Crude down.
The European continuing debt problems and banks financing difficulties still weighed on the markets. Analysts said that any negative news from Europe could trigger new round of sell-off.
Light, sweet crude for September delivery gained 1.86 dollars, or 2.26 percent to settle at 84.12 dollars a barrel on the New York Mercantile Exchange. But in London, Brent crude for October delivery fell on expectation of Libya oil export resumption and last traded around 108 dollars a barrel.
