By Ambar Warrick
Investing.com -- Oil prices rose on Monday, recouping a measure of recent losses, although pressure from concerns over rising interest rates and deteriorating demand persisted ahead of more indicators from the Federal Reserve on the path of monetary policy.
Crude prices were nursing steep losses from the prior week, as hotter-than-expected U.S. inflation and hawkish comments from some Fed officials ramped up fears of more policy tightening.
Rising interest rates are expected to stymie economic activity this year, which in turn could fuel a slowdown in oil demand.
Brent oil futures rose 0.3% to $83.41 a barrel, while West Texas Intermediate crude futures rose 0.5% to $76.90 a barrel by 21:44 ET (02:44 GMT). Both contracts slumped around 4% last week.
Focus this week is now squarely on the minutes of the Fed’s February meeting, due on Wednesday. The central bank had maintained its hawkish rhetoric during the meeting, with the minutes largely expected to reflect as much.
A slew of Fed speakers, along with a reading on the personal consumption expenditures index - the Fed’s preferred inflation gauge - are also due this week, and are expected to shed more light on monetary policy.
Oil prices were dented by growing signs of a U.S. supply glut, after the country logged substantially higher-than-expected inventory builds over the prior week. Washington also announced the sale of 26 million barrels of crude from the Strategic Petroleum Reserve.
Crude prices have struggled so far this year amid growing fears over a global economic slowdown as the effects of sharp interest rate hikes begin to be felt.
But oil bulls have still held out for a recovery in China, as the country re-emerges from three years of COVID lockdowns. An economic recovery in the world’s largest oil importer is forecast to push crude demand to record highs this year, according to the OPEC and the IEA.
The People’s Bank of China also maintained its key mortgage interest rates at historical lows on Monday, as the government attempts to shore up economic growth with more stimulus measures.
But economic data from China has so far painted a middling picture of growth.