Oil rose $1 to a new seven-month high on Monday as stock market optimism and hope for a global economic recovery propelled prices to extend the market's best monthly gains in a decade.

U.S. light sweet crude was trading $1.02 higher at $67.33 by 0621 GMT, after hitting a high of $67.36.

Prices rallied 30 percent in May, hitting their highest since early last November and giving OPEC enough hope about the outlook that it agreed to leave oil output levels unchanged at a meeting last week.

(Reporting by Sambit Mohanty; Editing by Clarence Fernandez)