Oil prices moved higher during Monday's Asian session as cooling U.S. inflation data fuelled optimism for potential policy easing in 2025, supporting expectations of global economic growth and increased oil demand.
By 2:30 pm AEDT (3:30 am GMT) Brent crude futures were up $0.27 or 0.4% to US$73.21 per barrel, while U.S. West Texas Intermediate (WTI) crude rose $0.31, or 0.5%, to $69.77 per barrel.
Last week, both benchmarks experienced losses of 1.9% and 2.3% respectively due to concerns over global economic conditions and the U.S. Federal Reserve’s cautious stance on monetary policy.
Meanwhile, supply fears in Europe eased over the weekend as the Druzhba pipeline reportedly resumed operations. The pipeline, which delivers Russian and Kazakh oil to Hungary, Slovakia, the Czech Republic, and Germany, had halted on Thursday due to technical issues.
In geopolitical developments, U.S. President-elect Donald Trump urged the European Union to increase imports of American oil and gas, warning of potential tariffs on EU exports if action was not taken. The European Commission expressed readiness to engage in discussions to enhance energy trade relations.