Oil edges up to three-month high

Oil prices rose on Monday to a three-month high as expectations of increasing demand overshadowed concerns about US Fed policy tightening.

The International Energy Forum expects oil prices to rise soon as demand grows in China and India by nearly two million bpd in the second half of the year.

Goldman Sachs analysts expect Brent to hit $86 a barrel by the end of the year amid a shortage of 2 million bpd in the third quarter with demand climbing to record highs.

On trading, Brent rose 2%, or $1.67 to $82.74 a barrel, the best since April 18.

US crude futures due in September rallied 2.15%, or $1.67 to $78.74 a barrel, the best since April 18.