Ammon News - Oil futures climbed on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil producing region.

Brent crude futures gained 51 cents, or 0.6%, to $83.47 a barrel at 0636 GMT, while U.S. West Texas Intermediate crude futures were at $78.64 a barrel, up 53 cents, or 0.7%.

Last week, both futures contracts posted their steepest weekly loss in three months with Brent falling more than 7% and WTI down 6.8%, as investors weighed weak U.S. jobs data and the possible timing of a Federal Reserve interest rate cut.

The geopolitical risk premium in oil prices also eased as talks for a Gaza ceasefire were underway.

Also bullish for prices, Saudi Arabia raised the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, signalling expectations of strong demand this summer.

"After falling a little more than 7.3% last week due to easing geopolitical tensions, ICE Brent has started the new trading week on a stronger footing, opening higher," ING's head of commodities research Warren Patterson said in a note.

This comes after Saudi Arabia raised June OSPs for most regions amid a tightening of supplies this quarter, he added.

Reuters