Oil prices rise as supply concerns dominate

NEW YORK, June 27 (Xinhua) -- Oil prices climbed on Monday, bolstered by continued concerns over tight supplies.

The West Texas Intermediate for August delivery added 1.95 U.S. dollars, or 1.8 percent, to settle at 109.57 dollars a barrel on the New York Mercantile Exchange. Brent crude for August delivery increased 1.97 dollars, or 1.7 percent, to close at 115.09 dollars a barrel on the London ICE Futures Exchange.

"The pronounced state of backwardation in the forward curves still points to tight supply," Carsten Fritsch, energy analyst at Commerzbank Research, said Monday in a note.

"After all, the risks on the supply side have not gone away, as the latest production outages in Libya have shown," he said.

Traders are awaiting a key meeting by the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, as the group is set to meet later this week to review the oil market and decide on output levels.

For the week ending Friday, the U.S. crude benchmark declined 0.3 percent, while Brent closed flat, based on the front-month contracts.

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