Oil rose nearly 1% on Monday as potential OPEC+ production cuts and conflict in Libya helped offset a strong US dollar and a negative outlook for US growth.

Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC) last week raised the possibility of production cuts, which sources said could coincide with an increase in supply from Iran should it strike a nuclear deal with the West.

Brent crude rose 0.6% to $101.64 per barrel by 0815 TMG, extending last week's 4.4% gain. U.S. West Texas Intermediate (WTI) crude was up 1.3% at $94.28, after rising 2.5% last week.

"Oil prices are rising on hopes of a production cut by OPEC and its allies to restore market balance in response to the revival of the Iran nuclear deal," Sugandha Sachdeva, vice president of commodity research at Religare Broking told Reuters.

OPEC+, which includes OPEC, Russia and allied producers, meets to set policy on September 5.

Crude prices have soared this year, with Brent crude approaching a record $147 in March, as Russia's invasion of Ukraine exacerbated supply concerns. Growing fears about high interest rates, inflation and recession risks have since weighed on the market.