Crude prices gained 1% on Monday, as hopes that OPEC will cut production to maintain prices, turmoil in Libya, and increased demand in Europe amid skyrocketing natural gas costs helped offset a dire outlook for US growth.

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West Texas Intermediate (WTI) crude futures in the United States rose $1.09, or 1.2%, to $94.15 a barrel, adding to a 2.5% rise last week.

Brent crude futures gained 89 cents, or 0.9%, to $101.88 a barrel, extending a 4.4% gain from the previous week.

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Both benchmark futures had traded lower initially in the day as the dollar rose following Federal Reserve Chairman Jerome Powell‘s tough comments on Friday that the United States faced a lengthy period of slow growth amid additional interest rate hikes.

Oil prices have risen as Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries and allies, known collectively as OPEC+, have hinted that they may restrict supply to balance the market, according to Reuters.

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The UAE is aligned with Saudi views on output management, while the Omani oil ministry has stated that it supports OPEC+ efforts to preserve market stability, reported Reuters citing sources.

In early Asia trade, the dollar reached 138.59 yen against the Japanese yen, its highest level since July 21. It last rose 0.59% to 138.485. Likewise, the offshore yuan plummeted to a new two-year low of 6.9321 per dollar.

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The sterling dropped to a two-and-a-half-year low of $1.1656 and was last down 0.5% to $1.16715, while the euro sank 0.36% to $0.9929.

The MSCI Asia Pacific Index (excluding Japan) lost 1.9%. The Nikkei in Japan fell 2.8%, while the KOSPI in South Korea fell 2.3%. Chinese blue chips fell 0.6%, while EUROSTOXX 50 futures fell 1.7%.