Oil prices traded mute on Monday as optimism grew that the Federal Reserve would maintain interest rates in order to prevent slowing the U.S. economy. Major producers were expected to keep supplies tight.

Brent crude added 5 cents to $88.60 per barrel meanwhile WTI advanced by 2 cents to $85.57 per barrel.

A voluntary decrease of 1 million barrels per day (bpd) by Saudi Arabia is anticipated to continue through October. Prior comments from Saudi Arabia regarding the extension of its voluntary cut were made before its official selling prices, which are normally released during the first week of each month.

After cutting its exports by 500,000 bpd in August, Russia has already confirmed a reduction of 300,000 bpd for September.

Job growth accelerated in the United States in August, but the unemployment rate increased to 3.8% and wage increases slowed, pointing to a cooling labor market and reinforcing views that the Federal Reserve won't slow down the economy any further by hiking interest rates this month.

An unexpected increase in manufacturing activity was seen in China in August, according to a PMI survey, which lessened some concerns about the country's economic situation. China is the world's largest oil importer, and since the COVID-19 outbreak, the country's economy has been negatively impacted by its troubled real estate market.