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Brent crude futures were up 21 cents at $83 a barrel by 1036
GMT. U.S. West Texas Intermediate crude futures were up 27 cents
at $78.53.
Although prices were supported by a few factors last week,
including a lack of progress in the latest round of negotiations
to halt hostilities in Gaza, economic factors are back in the
spotlight.
Commentary from policymakers suggests that a lowering of
borrowing costs is expected sooner in the UK and Europe than in
the United States.
U.S. inflation data this week will further inform the Federal
Reserve on interest rate policy.
Analysts expect the U.S. central bank to keep its policy rate on
hold for longer, supporting the dollar and making
dollar-denominated oil more expensive for investors holding
other currencies.
Meanwhile, Chinese data at the weekend showed consumer prices
rising for a third straight month in April while producer prices
extended declines, signaling improved domestic demand.
Further price support comes from expectations that the
Organization of the Petroleum Exporting Countries (OPEC) and its
allies, known collectively as OPEC+, will extend supply cuts
into the second half of the year.
Iraq, the second-largest OPEC producer, is committed to
voluntary oil production cuts agreed by the producer group, its
oil minister told the state news agency on Sunday.
The comments followed the minister's suggestion on Saturday that
Iraq had made enough voluntary reductions and would not agree to
any additional cuts proposed by the wider OPEC+ group at its
June meeting.
OPEC+ has previously called out Iraq for pumping more than its
output quota in the first three months of 2024. Baghdad agreed
to compensate with additional production cuts over the rest of
the year, the group said.
(Reporting by Natalie Grover in London and Florence Tan in
SingaporeEditing by David Goodman)
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