Oil rose 1% on Monday as signs of strong demand outweighed the impact of OPEC+ hiking output more than expected for August, as well as concern about the potential impact of U.S. tariffs.

Crude oil prices declined after OPEC agreed to raise production by 548,000 barrels per day in August. Oil prices also came under pressure as US officials flagged a delay on tariffs but failed to provide details on the change.

Oil crept higher as Saudi Arabia surprised customers in Asia by hiking prices for its main crude grade, signaling a vote of confidence that the market can absorb extra OPEC barrels.