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Aug 21 Reuters Oil prices rose on Monday as global supply is tightening with lower exports from Saudi Arabia and Russia, offsetting nagging concerns about global demand growth amid high interest rates.

Brent crude climbed 61 cents to 85.41 a barrel by 0649 GMT, while U.S. West Texas Intermediate crude was at 81.88 a barrel, up 63 cents. The September WTI contract expires on Tuesday and the more active October contract gained 56 cents to 81.22 a barrel.

Both frontmonth benchmark prices snapped a 7week winning streak last week to post a weekly loss of 2 after the U.S. dollar strengthened on the possibility interest rates could remain higher for longer, with China39;s property crisis adding to concerns about its sluggish economic growth and oil demand.

We still see a tight oil balance for the remainder of the year, which suggests that prices still have some room to run higher, said Warren Patterson, ING39;s head of commodities research.

As well, the dollar seems to be taking somewhat of a breather, which would be providing some support, he said.

Oil prices typically move inversely in relation to the U.S. dollar, with a weaker dollar making oil purchases less expensive for holders of other currencies and sparking demand.

On the supply side, OPEC crude exports set to fall a second month in August, said Stefano…