Crude prices traded higher on Monday as China's move to make its currency more flexible raised expectations for more demand.

Crude prices rose as high as 78.92 U.S. dollars in New York markets after China's central bank said it plans to allow the currency to be traded with more flexibility.

Prices were boosted as Russia cut gas supplies to Belarus by 15 percent on Monday raising fears of disruptions in deliveries to Europe.

Light, sweet crude gained 64 cents to settle at 77.82 U.S. dollars a barrel on the New York Mercantile Exchange after rising.

In London, Brent crude rose 60 cents to settle at 78.82 dollars on the ICE futures exchange.