2019.12.3009:48:00UTC+00Oil Prices Rise Amid Geopolitical Tensions

Oil prices edged up on Monday to hover near three-month highs amid rising political tensions in North East Asia and violence in the Middle East.

Benchmark Brent crude for March delivery rose 0.4 percent to $67.14 a barrel, while West Texas Intermediate (WTI) crude futures were up 0.35 percent, at $61.94 a barrel.

North Korean leader Kim Jong Un, at a ruling party meeting, called for "positive and offensive measures" to ensure security ahead of a year-end deadline he has set for denuclearisation talks with the United States.

The U.S. military carried out air strikes in Iraq and Syria on Sunday against Iran-backed militia group, while Turkey announced its plan to send forces to Libya to assist Al-Seraj government.

Declining U.S. crude inventories and expectations of improved factory activity data from China also supported prices.

Data released by the Energy Information Administration (EIA) on Friday showed crude stockpiles in the U.S. to have declined by nearly 5.5 million barrels in the week ended December 20, more than thrice the expected drop.

The data showed gasoline inventories rose 2 million barrels last week, while distillate stockpiles declined, against expectations of an increase in stock.

Meanwhile, a report from Baker Hughes said drillers cut 8 oil rigs in the week to December 27, bringing the total count down to 677, the lowest since mid-November.

China's official manufacturing PMI is due Tuesday, while the Caixin version will be released Thursday.