Oil prices increased on Monday as the world's supply shrank due to decreased exports from Saudi Arabia and Russia, allaying persistent worries about a rise in demand despite high interest rates.

Brent crude advanced by 61 cents to $85.41 per barrel meanwhile while U.S. West Texas Intermediate crude advanced by 63 cents to $81.88 per barrel.

The U.S. dollar increased on the prospect that interest rates might stay higher for longer, snapping a seven-week winning streak for both front-month benchmark prices, and concerns about China's slow economic growth and oil demand were exacerbated by the country's property crisis. This led to a 2% weekly loss for both benchmark prices last week.

A weakening dollar makes buying oil cheaper for owners of other currencies and increases demand, which is the normal inverse relationship between oil prices and the U.S. dollar.

According to early data from shiptracking company Kpler, Stefano Grasso, a senior portfolio manager at 8VantEdge in Singapore, predicted that OPEC+ crude exports will decline for a second month in a row in August.