Crude prices rose in Asian trade Monday on expectations of stimulus measures to boost economic growth in the United States, China and Europe, analysts said.
A collision between a US guided-missile destroyer and a Japanese-owned oil tanker near the Strait of Hormuz also rattled nerves among investors concerned over potential supply disruptions on the strategic waterway.
New York's main contract, light sweet crude for delivery in September, was up 48 cents to $93.35 in the afternoon, while Brent North Sea crude for September climbed 78 cents to $113.73.
"Potential policy actions in the US, Europe and China may boost economic growth — I'm talking about stimulus measures," said Victor Shum, an analyst with Purvin and Gertz energy consultants.
The European Central Bank is also expected to restart its bond-buying scheme to support under-pressure economies such as Spain and Italy.
In the US, investors are expecting the Federal Reserve to unveil its own drive to pump cash into the economy, while poor trade figures from China last week increased the likelihood Beijing will also intervene to kickstart growth.
Bank of America Merrill Lynch cut its forecast for China's economic growth this year to 7.7 percent from 8.0 percent previously and for next year to 7.6 percent from 8.0 percent.
But the bank said it still believed in a "soft-landing" for the economy.
"We think a growth pace above 7.0 percent is quite good given the colossal size of the Chinese economy and worsening external demand," it added.
The Strait of Hormuz connects the oil-rich Gulf to the Indian Ocean and around one-fifth of the world's traded oil passes through it.
Shum said the accident nearby "has raised some concerns about supply disruptions" on the waterway.
The Bahrain-based US Fifth Fleet said the collision "was not combat related".
