Oil prices in Asian trading on Monday showed slight gains, stabilizing after three consecutive weeks of declines while awaiting further developments on U.S. interest rates and the upcoming OPEC meeting later this week.
Last week, crude oil experienced a downturn from four-month lows due to a stronger dollar, which strengthened on better-than-expected nonfarm payrolls data.
Brent oil futures for August delivery edged up 0.2% to $79.77 per barrel, while West Texas Intermediate crude futures rose by the same margin to $75.38 per barrel by 21:40 ET (01:40 GMT).
Trading volumes remained subdued with market holidays observed in China, Australia, and Hong Kong.
Investors are eagerly anticipating the monthly report from the Organization of the Petroleum Exporting Countries (OPEC) scheduled for Tuesday, which will provide insights into the cartel's outlook on global oil demand. Last week, bearish signals from OPEC, coupled with concerns over weakening demand, had pushed oil prices to their lowest in four months. However, prices recovered slightly after OPEC ministers indicated they would not ramp up production if prices continued to weaken.
Following the OPEC report, the International Energy Agency will release its monthly report later this week.
Oil prices were also influenced by a stronger U.S. dollar following indications of continued strength in the labor market, which led traders to reconsider expectations of a September interest rate cut by the Federal Reserve. The Fed, set to meet later this week, is expected to maintain current interest rates, with any signals on future rate cuts closely watched.
In addition to the Fed meeting, market attention is on the consumer price index inflation data scheduled for Wednesday, which will influence the Fed's stance on inflation.
Paraphrasing text from "Investing" all rights reserved by the original author.
