Oil prices decreased on Monday as investors await further interest rate hikes from the U.S. and European central banks, while limited supply and hopes for Chinese stimulus kept Brent crude at $80 per barrel. As of 00:45 GMT, Brent crude futures fell by 41 cents, or 0.5%, to $80.66 per barrel. West Texas Intermediate futures dropped by 37 cents, or 0.5%, to $76.70 per barrel.
Both crude types rose by 1.5% and 2.2% respectively last week, marking the fourth consecutive week of gains, amid expectations of reduced supply following cuts by the OPEC+ group. Additionally, fighting escalated last week in Ukraine after Russia withdrew from the Black Sea grain transfer agreement.
Investors are considering a potential quarter-point interest rate hike from both the U.S. Federal Reserve and the European Central Bank this week, so attention will be focused on statements from Fed Chair Jerome Powell and ECB President Christine Lagarde regarding future rate increases.
Market participants are also anticipating that China will implement stimulus measures to support its struggling economy, which is likely to boost oil demand in the world's second-largest oil consumer.
Regarding supplies, UAE Energy Minister Suhail Al-Mazrouei stated on Friday that the OPEC+ group's measures to support the oil market are sufficient for now, adding that the group is prepared to take further actions if necessary.
