Oil prices saw an increase on Monday for the 5th consecutive session, maintaining most of last week’s over 3 percent gains as geopolitical tensions in the Middle East continued to escalate and better U.S. economic data faded concerns over a recession.
Brent oil futures rose 0.28 percent to $79.88 per barrel while West Texas Intermediate crude futures gained 0.49 percent to $77.22 per barrel as of 5:24 GMT.
U.S. recession fears ease
Oil prices rose with support from last week’s better-than-expected U.S. economic data, which eased fears of a recession. Prices were also supported by rising tensions in the Middle East over the weekend.
Brent ended last week up more than 3.5 percent, while WTI gained more than 4 percent on supportive economic data and greater hopes of a U.S. interest rate cut.
Three U.S. central bank officials said last week that inflation appeared to be cooling enough for the Federal Reserve to cut interest rates as soon as next month. Meanwhile, China’s consumer prices rose faster than expected in July and U.S. weekly jobless claims fell more than expected last week.
U.S. consumer price index (CPI) data is due on Wednesday and will likely show some cooling in inflation in July, which bodes well for expectations of interest rate cuts in September.
Read: Oil prices hold steady amid positive economic data, poised for first weekly gain in five
Other key releases this weekÂ
CPI data from major oil importer India is also due on Monday and will likely show a substantial cooling in inflation, while CPI data from the UK is due on Wednesday. In addition, monthly reports from the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA) are also due this week.
Before last week, oil prices recorded four consecutive weeks of losses amid fears of slowing economic growth, especially in top oil consumers the U.S. and China.
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