Oil rises over $1 a barrel ahead of inflation data after downbeat week
As of 12:10 p.m. ET (1610 GMT), the Brent crude July contract increased by 99 cents, reaching $83.11 per barrel. The more actively traded August contract rose by $1.08 to $82.92. Meanwhile, U.S. West Texas Intermediate (WTI) crude futures climbed $1.06, reaching $78.77 per barrel.
rose by more than $1 per barrel in muted trade owing to public holidays in Britain and the United States after a downbeat week characterised by the outlook for U.S. in the face of sticky .The July contract was up 99 cents at $83.11 a barrel by 12:10 p.m. ET (1610 GMT). The more active August contract rose $1.08 to $82.92.
U.S. West Texas Intermediate (WTI) crude futures were up $1.06 at $78.77.
Brent lost about 2% last week and WTI nearly 3% after minutes showed some officials would be willing to raise interest rates further if it were deemed necessary to control stubbornly high .
"Sentiment in the oil complex ... has been skittish as investors are constantly recalibrating expectations for the Federal Reserve’s trajectory," said Vandana Hari, founder of oil market provider .
Recent data emanating from Western economies has shifted rate cut expectations depending on geography.
On Monday, key (ECB) policymakers said the has room to cut interest rates as inflation slows but must take its time in easing policy.
Figures for inflation in the zone are due on Friday and economists believe an expected tick up to 2.5% should not stop the ECB from easing policy next week.
The U.S. personal consumption expenditures index expected this week will be in the spotlight for further signals about interest rate policy. The index, due to be released on May 31, is viewed as the 's preferred measure of inflation.
German inflation data on Wednesday and euro zone readings on Friday will also be watched for signs of a European rate cut that traders have pencilled in for next week.
Eyes will also be trained on the coming meeting of the OPEC+ group of oil producers comprising the () and allies including Russia. The meeting is to take online on June 2.
An extension to of 2.2 million barrels per day is the likely outcome, OPEC+ sources have said this month.
Goldman Sachs raised its global oil demand forecast for 2030 on Monday and expects consumption to peak by 2034 on a potential slowdown in electric vehicle adoption, keeping refineries running at higher-than-average rates till the end of this decade.
