Brent crude oil hits 3-month high above $108

Brent crude futures rose above $108 to the highest in more than three months on Monday, extending last week’s gains as tensions in Egypt stoked concerns about global oil supplies.

At least 15 people were killed on Monday in Cairo, medical sources said, when the Muslim Brotherhood said shots were fired at supporters of deposed President Mohamed Mursi near the military building where he is being held.

Any conflict in the Middle East raises worries of disruption to major oil-producing areas or oil shipments.

So far, ports and shipping through the Suez Canal – through which a major portion of the world’s oil is shipped – have been operating normally, shipping sources and official said.

“What’s underpinning the strength in the oil market is the tensions out of the Middle East”, said Ben Le Brun, an analyst at OptionsXpress in Sydney.

“There’s been some cause for concern and that’s going to continue to put a floor under oil prices.”

Brent crude futures gained 24 cents to $107.96 a barrel, after hitting $108.04 — the highest since April 4 — earlier in the session.

U.S. crude increased by 15 cents to $103.37 a barrel, after earlier touching a fresh 14-month high of $104.12.

Oil prices were also supported by a U.S. jobs data report on Friday that came in better than expected, signalling that growth in the world’s largest oil consumer is gathering momentum.

U.S. employers added 195,000 new jobs to their payrolls last month, beating expectations of 165,000.

The figures for April and May were also revised up by a combined 70,000.

But the data also cemented expectations that the U.S. Federal Reserve could start winding down its massive stimulus programme as early as September.