SINGAPORE, June 24 (Reuters) - Oil prices inched down on

Monday as concerns of higher-for-longer interest rates

resurfaced and lifted the dollar, offsetting support for oil

markets from geopolitical tensions and OPEC+ supply cuts.

Brent crude futures slipped 5 cents to $85.19 a

barrel by 0417 GMT, after settling down 0.6% on Friday. U.S.

West Texas Intermediate crude futures were at $80.66 a

barrel, down 7 cents.

"The U.S. dollar has opened bid this morning and appears to

have broken higher following better U.S. PMI data on Friday

night and political concerns ahead of the French election," said

Tony Sycamore, a Sydney-based markets analyst at IG.

A stronger greenback makes dollar-denominated commodities

less attractive for holders of other currencies.

The dollar index, which measures the greenback against six

major currencies, climbed on Friday and was up slightly on

Monday after purchasing managers index data showed U.S. business

activity was at a 26-month high in June.

However, both benchmark crude contracts gained about 3% last

week on signs of stronger oil products demand in the U.S.,

world's largest consumer, and as OPEC+ cuts kept supply in

check.

U.S. crude inventories fell while gasoline demand rose for

the seventh straight week and jet fuel consumption has returned

to 2019 levels, ANZ analysts said in a note.

ING analysts led by Warren Patterson said speculators have

also become more constructive towards oil into summer and

increased their net-long positions in ICE Brent.

"We remain supportive towards the oil market with a

deficit over the third quarter set to tighten the oil balance,"

the analysts said in a note.

Geopolitical risks in the Middle East from the Gaza crisis

and a ramp-up in Ukrainian drone attacks on Russian refineries

are also underpinning oil prices.

In Ecuador, state oil company Petroecuador has declared

force majeure over deliveries of Napo heavy crude for exports

following the shutdown of a key pipeline and oil wells due to

heavy rains, sources said on Friday.

In the U.S., the number of operating oil rigs fell three to

485 last week, their lowest since January 2022, Baker Hughes ( BKR )

said in its report on Friday.