Oil prices edged higher on Monday as the prospect of an expected interest rate cut by the U.S. Federal Reserve overshadowed pessimism over U.S.-China trade talks and worries about slower global economic growth.
Brent crude rose 0.2% to $63.60 a barrel, while U.S. West Texas Intermediate (WTI) crude futures settled up 1.2% at $56.87 a barrel.
Traders and investors are watching the Fed this week, with U.S. central bankers expected to lower borrowing costs for the first time since the depths of the financial crisis more than a decade ago.
Crude prices were also supported by supply risk as tensions remained high around the Strait of Hormuz, through which about a fifth of the world’s oil passes.
Source : Reuters