Oil prices rose on Monday as investors awaited additional insights into the U.S. central bank‘s interest rate cut path, which is expected to begin as soon as September.
Brent oil futures for September delivery rose 0.53 percent to $83.07 per barrel, while West Texas Intermediate (WTI) crude futures rose 0.51 percent to $80.54 per barrel as of 5:19 GMT.
U.S. interest rate cut
Since the Federal Reserve’s last meeting in June, inflation and labor market data have signaled that disinflation and labor market stability have begun. Therefore, markets expect the Fed to begin its rate-cut cycle in September.
The U.S. Federal Reserve will next hold a Federal Open Market Committee (FOMC) meeting on July 30-31. As oil prices rise, investors expect the central bank to hold interest rates while looking for any signs of a rate cut later in the year.
As oil prices rise, market focus shifts to Friday’s U.S. personal consumption expenditures (PCE) data. In addition, this week will see the release of existing home sales data, July’s S&P Global flash PMIs, advance second-quarter GDP, and weekly jobless claims data which will provide additional insight into the Fed’s rate cut trajectory.
Read: Oil prices retreat amid doubts about China’s demand outlook, signaling weekly losses
China demand concerns
China’s slower-than-expected economic growth of 4.7 percent in the second quarter sparked concerns last week over the country’s demand for oil, which continues to impact prices.
The document’s publication follows last week’s closed-door meeting of the Communist Party’s Central Committee, which takes place around every five years.
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