08:38 AM EDT, 08/25/2025 (MT Newswires) -- Oil prices rose early on Monday, up for a fourth session as demand remains strong in the final week of the U.S. driving season and investors move to add risk after the chair of the Federal Reserve on Friday signaled an interest-rate cut is likely coming.

West Texas Intermediate crude oil for October delivery was last seen up US$0.43 to US$64.09 per barrel, while October Brent oil was up US$0.43 to US$68.16.

Oil has mostly traded in a tight range since April, supported by high demand amid the U.S. summer driving season even as supply is on the rise, with OPEC+ readying to add 548.000 barrels per day of new supply on Sept.1, the final tranche in its return of 2.2-million bpd of supply cuts.

While major forecasting agencies are warning global supply is on the rise, demand remains high, with the Energy Information Agency last week saying U.S. oil inventories fell by a more than expected six-million barrels in the previous week on strong demand for gasoline. However the U.S. driving season comes to an end with next weekend's Labor Day holiday.

A dovish Friday speech from Federal Reserve Chair Jerome Powell is also supporting oil, as he indicated the central bank is likely to lower interest rates for the first time this year, even as inflation remains higher than the Fed's 2% target. Investors moved to risk assets following the speech, with the Dow Jones Industrial Average rising to a record.

The collapse of an attempt by the United States to arrange a ceasefire in Russia's war on Ukraine is also boosting oil, as the Trump Administration renewed threats to impose secondary tariffs on India for its imports of Russian oil.

"Crude oil held steady after a three-day advance, supported by broader risk appetite and renewed supply concerns as hopes for a US-brokered peace deal with Russia fade. Washington has threatened to double tariffs on all imports from India to 50% by Wednesday in retaliation for its continued purchases of Russian oil," Saxo Bank noted.