Oil Prices Rise Amid U.S. Inflation Data

Oil prices rose on Monday, buoyed by lower-than-expected U.S. inflation data that sparked hopes for further monetary policy easing. Brent crude futures increased by 36 cents to $73.30 a barrel, while U.S. West Texas Intermediate crude gained 39 cents to $69.85. Analysts noted that the easing inflation concerns, combined with the U.S. Senate's resolution to avoid a government shutdown, provided a positive outlook for risk assets. However, worries about a potential supply surplus in the coming year, particularly due to China's projected peak oil consumption in 2027, continued to temper market enthusiasm. Additionally, the Druzhba pipeline resuming operations after a technical halt eased concerns regarding European supply. Despite these gains, traders remain cautious about the overall demand outlook as the market approaches 2025.