LONDON--Crude oil futures gained Monday as tensions in Beirut boosted fears about oil supply disruptions from the Middle East.
At 0951 GMT, the December Brent contract on London's ICE futures exchange was up 50 cents, or 0.5%, at $110.64 a barrel. The front-month contract on the New York Mercantile Exchange was trading up 54 cents, or 0.6%, at $90.59 a barrel.
"The uncertain situation in the Middle East also remains a factor with the tendency to drive prices upwards," said Commerzbank in a note published Monday. "Lebanon has now become a new seat of unrest, with violent disputes having taken place there yesterday."
This uptick could be limited by the return of North Sea production to the market after being halted for maintenance, analysts said.
"The very large tightness we've seen in the North Sea might not be there if we move two or three weeks ahead," said Torbjorn Kjus, oil market analyst at DnB NOR.
Production issues at Buzzard, the largest Forties field, tend to provide strong support to Brent oil futures. Forties is the main component of global benchmark Brent, used to price most of the world's oil.
Meanwhile, European equities were slightly higher, though there's still no news about when Greece will get its second trance of bailout funds. Market participants will keep their eyes on the Federal Open Market Committee meeting later this week, watching for any changes in the outlook for U.S. economic growth.
At 0953 GMT, the ICE's gasoil contract for November delivery was trading $9.25 lower, or 0.9%, at $987.25 per metric ton. Nymex gasoline for November delivery was up 102 points, or 0.4%, at $2.7065 per gallon.
-Write to Jenny Gross at jenny.gross@dowjones.com; Twitter: @jgginlondon
