Oil prices rose in early trading on Monday as investors awaited signals of a rate cut expected to begin in September.
Brent crude oil prices rose 48 cents, or 0.57%, to $83.10 a barrel by 0035 GMT, and WTI futures rose 42 cents, or 0.52%, to $80.55.
Since the June FOMC meeting, inflation and labor market data have been pointing to lower inflation and a rebalancing of the labor market, which would allow the Fed’s rate-cutting cycle to begin in September.
The Fed will hold its Federal Open Market Committee (FOMC) meeting on July 30-31. Investors expect the Fed to hold interest rates steady, which signals a cut later in the year.
On the political front, US President Joe Biden dropped his re-election bid on Sunday and endorsed Vice President Kamala Harris as the party’s candidate to face Republican Donald Trump in November.
China’s slower-than-expected 4.7% economic growth in the second quarter has raised concerns about the country’s oil demand over the past week and continues to weigh on prices.
On Sunday, China released a policy document outlining known goals, from developing advanced industries to improving the business environment, and analysts saw no signs of structural change in the world’s second-largest economy shortly.
