U.S. crude price rose Monday as major stock indices of the country rallied amid eased geopolitical worries.
Russia has reportedly ended its military drill near the Ukrainian border. Deescalated tensions in Ukraine helped the U.S. stock markets post gains. Moreover, Israel and Hamas agreed Sunday to launch a new 72-hour truce.
Markets also estimated that U.S. crude inventories dropped last week as demand picked up. Nationwide crude stockpiles in the United States decreased 1.8 million barrels to 365.6 million for the week ended Aug. 1.
Brent crude price dropped slightly as traders were relieved somewhat in believing impacts of U.S. airstrikes in Iraq on the crude market would be limited.
The Pentagon announced on Friday that the U.S. military have launched targeted airstrikes on forces of the Islamic State of Iraq. Some analyst said in the longer term, the U.S. involvement in Iraq is good for oil supply as the Kurds are able to retake the oil fields from the militants.
Light, sweet crude for September delivery edged up 43 cents to settle at 98.08 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery lost 34 cents to close at 104.68 dollars a barrel.