FX.co ★ Oil Prices Rise As Inflation Concerns Ease

Oil prices rose slightly on Monday and were on track for their biggest monthly gain in over a year on signs of tight supply and optimism over increased demand for oil in the U.S. and China.

Expectations of an end to U.S. rate hikes and hopes that Saudi output cuts will remain in place throughout September also supported prices.

Benchmark Brent crude futures edged up 0.2 percent to $84.53 a barrel, while WTI crude futures were up 0.3 percent at $80.79.

Signs of easing inflation in the U.S. and Europe raised hopes that major central banks are approaching the end of tightening cycles.

Data showed on Friday that the Fed's favorite inflation gauge slowed to a two-year low in June, easing concerns about the outlook for interest rates.

Eurostat reported earlier today that Eurozone returned to growth in the second quarter amid falling inflation.

According to Eurostat, Eurozone inflation fell in line with expectations to 5.3 percent year-on-year in July, compared with 5.5 percent in June.

Goldman Sachs on Sunday upgraded its oil demand outlook for the year, citing a reduced recession risk and a strong effort by OPEC leaders to push up prices.