Oil prices jump over $3/barrel on prospect of OPEC-plus supply cut

Oil prices rose more than $3 a barrel on Monday, extending last week’s gain, as potential OPEC+ output cuts and conflict in Libya helped to offset a strong U.S. dollar and a dire outlook for U.S. growth.

Saudi Arabia, top producer in the Organization of the Petroleum Exporting Countries (OPEC), last week raised the possibility of production cuts, which sources said could coincide with a boost in supply from Iran should it clinch a nuclear deal with the West.

OPEC+, comprising OPEC, Russia and allied producers, meets to set policy on Sept. 5.

Brent crude was up $3.16, or 3.1%, at $104.15 a barrel by 12:22 p.m. EDT (1633 GMT), having risen by 4.4% last week. U.S. West Texas Intermediate (WTI) crude gained $3.16, or 3.4%, to$ 96.22 after rallying 2.5% last week.