Oil prices inched up in Asian trading on Monday. Crude prices had gained some ground the previous week, as the prospect of interest rate cuts by the U.S. Federal Reserve and improving demand from major importer China stoked increased appetite for crude.
Markets were also buoyed by the U.S. government’s announcement that it had purchased around 3.3 million barrels of oil to help replenish the Strategic Petroleum Reserve.
Read more: Oil prices steady, on track for modest weekly gains as demand outlook brightens
Brent oil futures expiring in July rose 0.3 percent to $84.19 per barrel. Meanwhile, West Texas Intermediate (WTI) crude futures increased 0.2 percent to $79.70 per barrel by 22:08 ET (02:08 GMT).
Ongoing concerns about potential instability in the Middle East disrupting oil supplies from the region have been a key factor supporting oil prices, keeping Brent trading comfortably above $80 for most of 2024.
Awaiting Fed cues
Oil markets remained cautious, however, as investors awaited a slew of upcoming cues on U.S. interest rates and the economy this week.
The minutes of the Federal Reserve’s late-April meeting are due, along with addresses from several Fed officials.
Investors were also on edge ahead of a meeting of the Organization of the Petroleum Exporting Countries and its allies (OPEC+) scheduled for June 1, as any updates on the cartel’s plans to maintain ongoing production cuts will be closely watched.
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