On Monday, the price of oil was expected to record its largest monthly rise in more than a year as traders anticipated that Saudi Arabia would prolong its voluntary output cutbacks into September, which would tighten the global supply.

Brent crude futures edged up 74 cents to $85.73 per barrel, meanwhile US WTI crude added 98 cents to $81.56 per barrel.

Monday marks the end of the Brent contract for September. The more active October contract was $85.30 per barrel, up 89 cents.

Brent and WTI reached their highest settlement levels since April on Friday, increasing for a fifth consecutive week as tightening global oil supply and hopes that U.S. interest rate rises are coming to a stop bolstered prices.

Saudi Arabia's voluntary 1 million barrel per day (bpd) oil output cut is anticipated to be extended for an additional month, to cover September.

According to the bank, global oil demand reached a new high of 102.8 million bpd in July. The demand for oil is expected to increase by roughly 550,000 bpd in 2023 due to updated predictions of greater economic growth in India and the United States, which will offset a decrease in China's consumption.