NEW YORK/MILAN, - Oil prices climbed on Monday as attacks on Saudi Arabia overshadowed hopes for supply improvements, and expectations for higher US interest rates to fight inflation drove the dollar higher on a narrowly mixed day for global stocks.
The action came after US President Donald Trump hailed fresh Russian diesel exports and a Russia-Ukraine energy ceasefire.
The dollar's rise in recent months has been driven in large part by expectations that high prices for energy and other goods will force the Federal Reserve to raise interest rates at a time when US growth is stronger than in other rich economies. This could expand the rate differentials that drive currency movements.
While the US bond market was closed for the Columbus Day holiday, investors were cautiously waiting for September inflation data and the third-quarter earnings season, which begins on Tuesday with earnings from major US banks.
"There's a lot to be wary of," said Robert Pavlik, senior portfolio manager at Dakota Wealth Management. "You're walking down a train line and you don't know, because it's dark, if a train is coming and so, you know, you're just being real careful right today."