Investing.com -- U.S. crude futures rose considerably Monday after falling to fresh 10-week lows earlier in the session, as investors reacted to a series of airstrikes from France against the Islamic State in Syria in response to Friday's terrorist attacks in Paris.
On the New York Mercantile Exchange, WTI crude for December delivery traded between $40.06 and $42.25 a barrel before settling at $41.69, up 0.95 or 2.32% on the session. At one point, the front month contract for U.S. crude dipped to its lowest level since August 27 when it slipped below $39 a barrel. In spite of Monday's gains, Texas Long Sweet futures are still down more than 10% over the last month of trading.
On the Intercontinental Exchange (ICE), brent crude for January delivery wavered between $43.16 and $45.17 a barrel before closing at $44.59, up 0.13 or 0.29% on the day. Over the last 30 days of trading, North Brent Sea crude has fallen precipitously amid continuing fears regarding the impact of a glut of oversupply on global markets. Since approaching $51 a barrel on Oct. 16, brent crude futures have fallen by more than 9%.
Energy traders closely monitored activity in Syria after France launched a wave of attacks against ISIS on Sunday, which claimed responsibility for the attacks in Paris. Last Friday, crude prices slumped to near six-and-a-year lows, hours before the Paris attacks claimed the lives of at least 132 people and wounded at least 350 others. Days before Friday night's terrorist activities in Paris, the New York Times reported last week that the U.S. had increased attacks against ISIS-controlled oil fields in Eastern Syria, the last of which were seized by the Islamic State earlier this fall. It came amid growing frustrations from U.S. Defense Secretary Ashton Carter on ISIS' proficiency in producing and exporting oil over the last year. During that span, oil proceeds from ISIS controlled fields have produced an average of $40 million a month, according to Treasury Department estimates.
In Iraq, output remains near record-highs after surging to an all-time high of 4.1 million barrels per day earlier this summer. At that point, ISIS controlled approximately 10% of the nation's oil fields, according to CNN. As geopolitical tensions intensify, oil prices generally spike amid stronger demand.
The U.S. Dollar Index, which measures the strength of the greenback against a basket of six other major currencies, jumped more than 0.45% on Monday to an intraday high of 99.40. In U.S. afternoon trading, the index neared last week's highs when it surged to its strongest level in seven months.
Dollar-denominated commodities such as crude become more expensive for foreign purchasers when the dollar appreciates.