Image credit: Global Risk Management

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Oil rose as a weaker dollar boosted the appeal of commodities and concerns over global supply disruptions persisted.

Tensions in the Middle East remain high as the U.S. reimposes sanctions on Iran and Saudi Arabia halted shipments via a key Red Sea shipping lane last week after two tankers were attacked by Yemen's Houthi militia. Escalation of either of these conflicts would have enormous impact on oil supply globally.

The sanctioning has already caused Indian refiners to order about 12 percent less Iranian oil in June than in May - when the U.S. announced the reimposing of the sanctions.

Yesterday, a 12-hour strike of around 45 workers at Total's British offshore oil and gas platforms went into effect. Britain's largest labour union, Unite, has scheduled further 24-hour stoppages on Aug. 6 and Aug. 20, and a 12-hour strike on Aug. 13 if it is unable agree on new rotas with Total.

Today, the API inventory levels are released and tomorrow EIA's inventory count is released.