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Brent crude futures rose 4 cents, to $81.11 a barrel by 0644
GMT. U.S. West Texas Intermediate (WTI) crude was at $77.11 a
barrel, also up 4 cents.
The benchmarks rose 1.5% and 2.2% respectively last week, their
fourth straight of week of gains, as supply is expected to
tighten following OPEC+ cuts. Fighting also escalated last week
in Ukraine after Russia withdrew from a U.N.-brokered safe sea
corridor agreement for grain exports.
Oil's rise has reflected "tightening conditions as Saudi oil
output cuts impact the market ... even as summer demand has been
somewhat stronger for gasoline and jet fuel," Citi Research said
in a note.
The bank said it sees some upside for oil over the summer and
forecast an average price in the third quarter of $83 a barrel.
"While another Fed rate hike this week may drive some short-term
price volatility, we expect tightening market conditions on
OPEC's supply cuts and increasing market speculation of further
stimulus in China to continue to push prices higher through
3Q23," analysts from National Australian Bank said in a note.
Investors have priced in quarter-point hikes from the Federal
Reserve and European Central Bank this week so the focus will be
on what Fed Chair Jerome Powell and ECB President Christine
Lagarde say about future rate hikes. [MKTS/GLOB]
Rising interest rates have dampened investments and strengthened
the greenback, making dollar-denominated commodities more
expensive for holders of other currencies.
In China, market participants expect Beijing to implement
targeted stimulus measures to support its flagging economy,
likely boosting oil demand in the world's No. 2 consumer.
China's state planner on Monday unveiled measures to spur
private investment in some infrastructure sectors, and said it
will also strengthen financing support for private projects.
(Additional reporting by Florence Tan and Emily Chow; Editing by
Tom Hogue and Sharon Singleton)
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