Oil prices were steady in Asian trading on Monday as markets await the OPEC+ meeting on June 2, when producers are expected to discuss continuing voluntary production cuts for the rest of the year.

The July contract for Brent crude oil rose 24 cents to $82.36 per barrel as of 06:38 GMT. The more active August contract rose 29 cents to $82.13. West Texas Intermediate (WTI) crude oil futures rose 28 cents to $78 a barrel.

Brent ended last week down nearly 2% and WTI lost nearly 3% after Fed minutes showed some officials may be willing to tighten interest rates further in an attempt to control persistent inflation.

Trade is expected to remain relatively weak over public holidays in the US and UK on Monday.

The upcoming meeting of OPEC+ has been postponed by one day and will be held online, OPEC said on Friday.

Producers will discuss whether voluntary production cuts of 2.2 million barrels per day should be extended into the second half of the year, and three sources in OPEC+ countries say an extension is likely.

The course of price action will be significantly affected by US Producer Price Index (PPI) data scheduled for this week, which will shape the Federal Reserve’s approach to potential interest rate adjustments.

While OPEC expects another year of relatively strong growth in oil demand of 2.25 million barrels per day, the International Energy Agency (IEA) expects much slower growth of 1.2 million barrels per day.

Gasoline use will be monitored as the Northern Hemisphere heads into summer, a high season for driving holidays

While vacation trips in the US are expected to reach their highest level after COVID, fuel efficiency has increased. However, oil demand may remain weak due to electric vehicles. But this is likely to be offset by increased air travel.

Markets will also watch the US personal consumption expenditures (PCE) index this week for further signals on interest rate policy. The index, which will be announced on May 31, is seen as the US Federal Reserve’s preferred inflation measure.