Oil prices experienced an upward trajectory on Monday, recovering from the sell-off witnessed in the previous week. This resurgence can be attributed in part to the rate cut implemented by China, as well as the anticipation of reduced output from a consortium of prominent producers in August.
The crude oil market displayed signs of weakening last week, culminating a seven-week streak of gains. This decline was fueled by concerns surrounding higher U.S. interest rates and the decelerating economic recovery in China, both of which have raised apprehensions about oil demand.
Notably, the potential for tightened supplies has emerged as a countervailing force. The profound output reductions enacted by Saudi Arabia and Russia, both leading members of the OPEC+ alliance, throughout this year have played a pivotal role in buoying prices.
As of 03:35 ET, U.S. crude futures marked a 0.9% ascent to $81.36 per barrel, while the Brent contract also surged 0.9% to reach $85.54.
Furthermore, gold futures experienced a modest uptick of 0.1%, reaching $1,918.25 per ounce. Concurrently, the EUR/USD currency pair observed a 0.1% increase, trading at 1.0886.