SINGAPORE: Oil prices inched higher on Monday, along with other risk assets, after US data showed cooling inflation, reviving hopes of further policy easing next year that will support global economic growth and oil demand.
Brent crude futures rose 26 cents, or 0.4 per cent, to $73.20 a barrel by 0141 GMT. US West Texas Intermediate crude futures climbed 31 cents, or 0.5 per cent, to $69.77 per barrel.
“Risk assets, including US equity futures and crude oil, have started the week on a firmer footing,” IG markets analyst Tony Sycamore said, adding that cooler inflation data helped alleviate concerns following the Federal Reserve’s hawkish rate cut.
“I think the US Senate passing legislation to end the brief shutdown over the weekend has helped,” he said.
Both oil benchmarks fell more than 2 per cent last week on concerns about global economic growth and oil demand after the US central bank signalled caution over further easing of monetary policy. Research from Asia’s top refiner Sinopec pointing to China’s oil consumption peaking in 2027 also weighed on prices.
“I think the US Senate passing legislation to end the brief shutdown over the weekend has helped,” he said.
Both oil benchmarks fell more than 2 per cent last week on concerns about global economic growth and oil demand after the US central bank signalled caution over further easing of monetary policy. Research from Asia’s top refiner Sinopec pointing to China’s oil consumption peaking in 2027 also weighed on prices.
Concerns about European supply eased on reports the Druzhba pipeline, which sends Russian and Kazakh oil to Hungary, Slovakia, the Czech Republic and Germany, has restarted after halting on Thursday due to technical problems at a Russian pumping station.
Shipments resumed on Saturday, according to Belarus’ BelTa state news agency. On Sunday, Hungarian Foreign Minister Peter Szijjarto said supplies on Druzbha to the country had restarted.
In the US, the number of operating oil rigs were up one to 483 last week, the highest since September, Baker Hughes reported on Friday.
Read next: Mi quietly reduces smartphone prices in Pakistan by up to Rs40,000