Oil prices rose on Monday to extend their sharp increase from the end of last week. The prices jumped on a decline in US inventories and drilling. US crude futures rose above 40 dollars a barrel in early trading before easing slightly still above their last close. International benchmark Brent was up 9 cents.

Oil prices accumulatively increased 8 percent last week. US crude closed at 39.72 dollars per barrel on Friday, up 6.6 percent. American energy firms last week cut the number of working oil rigs for a third week in a row to the lowest level since November 2009 in an effort to reduce spending.