Oil rose on Monday as supply concerns driven by lower OPEC output, unrest in Libya and sanctions on Russia outweighed fears of demand-sapping global recession.

Euro zone inflation hit yet another record high in June, strengthening the case for rapid European Central Bank rate increases, while US consumer sentiment hit a record low. read more

Brent crude rose $1.55, or 1.4 per cent, to $113.18 a barrel by 1318 GMT after falling more than $1 in early trade. US West Texas Intermediate (WTI) crude rose $1.34, or 1.2 per cent, to $109.77.

The Organisation of the Petroleum Exporting Countries (OPEC) missed a target to boost output in June, a Reuters survey found.