Crude oil price rises after sharp falls last week

Price of Brent crude rose to $83.10 a barrel.

Crude oil prices rose by more than $1 per barrel in muted trade on the outlook for US interest rates. The price of Brent crude rose to $83.10 a barrel after the global benchmark lost about 2% last week when US Federal Reserve minutes showed some officials would be willing to raise interest rates further if it were deemed necessary to control stubbornly high inflation in the US.

Delayed cuts in US rates could dampen economic activity and curtail oil consumption in one of the world's largest consumers. Recent data emanating from Western economies has shifted rate cut expectations depending on geography.

On Monday, key European Central Bank policymakers said the bank had room to cut interest rates as inflation slows but must take its time in easing policy. Figures for inflation in the eurozone are due on Friday and economists believe an expected tick up to 2.5% should not stop the ECB from easing policy next week.

However, the US personal consumption expenditures index expected this week will be in the spotlight for further signals about interest rate policy there. The index, due to be released on May 31, is viewed as the US Federal Reserve's preferred measure of inflation.

German inflation data on Wednesday and eurozone readings on Friday will also be watched for signs of a European rate cut that traders have pencilled in for next week. 

Eyes will also be trained on the coming meeting of the Opec+ group of oil producers comprising the Organization of the Petroleum Exporting Countries and allies including Russia. The meeting is to take place online on June 2. 

Reuters