Oil prices jump as traders assess supply tightness

NEW YORK, Aug. 29 (Xinhua) -- Oil prices surged on Monday as traders eyed risks on the supply side.

The West Texas Intermediate for October delivery added 3.95 U.S. dollars, or 4.2 percent, to settle at 97.01 dollars a barrel on the New York Mercantile Exchange. Brent crude for October delivery increased 4.1 dollars, or 4.1 percent, to close at 105.09 dollars a barrel on the London ICE Futures Exchange.

The rally came as oil participants weighed the prospects for output cuts from the Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+.

Saudi Arabia's energy minister signaled last week that there is a disconnect between futures prices and fundamentals, and that OPEC+ has the means to deal with challenges including cutting production to restore market balance.

Prices also garnered some support as market participants worried that unrest in Libya could disrupt crude oil supplies.

For the week ending Friday, the U.S. crude benchmark advanced 2.9 percent, while Brent rose 4.4 percent.