Oil prices advanced on Monday as investors monitor geopolitical tensions.

The West Texas Intermediate (WTI) for March delivery added 2.36 U.S. dollars, or 2.5 percent, to settle at 95.46 dollars a barrel on the New York Mercantile Exchange. Brent crude for April delivery increased 2.04 dollars, or 2.2 percent, to close at 96.48 dollars a barrel on the London ICE Futures Exchange.

Concerns about an escalation of Russia-Ukraine tensions are driving oil prices up noticeably, Carsten Fritsch, energy analyst at Commerzbank Research, said Monday in a note.

Traders also digested a closely-watched report by the International Energy Agency (IEA).

In its monthly report released on Friday, the IEA revised its forecast for global oil demand this year considerably upwards.

The Paris-based energy watchdog also warned that the gap between OPEC+ output and its target levels swelled in January.

"That shortfall is expected to deepen as some OPEC+ members struggle with production constraints, exacerbating market tightness," said the IEA.

For the week ending Friday, the U.S. crude benchmark rose 0.9 percent, while Brent advanced 1.3 percent, based on the front-month contracts.

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