RoydadNaft –  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 3 cents to $85.21 a barrel by 0632 GMT, after settling down 0.6% on Friday. U.S. West Texas Intermediate crude futures were at $80.71 a barrel, down 2 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.

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.

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.