In the early trade on Monday, oil prices increased as investors considered the expected start of a series of rate cuts in September. At 0035 GMT, the price of Brent crude rose by 48 cents, or 0.57%, reaching USD 83.10 per barrel, while U.S. West Texas Intermediate crude futures went up by 42 cents, or 0.52%, to USD 80.55.

ANZ Research has pointed out that data on inflation and the labour market since the June Federal Open Market Committee (FOMC) meeting indicate progress in disinflation and rebalancing, which could allow the Fed to implement a series of interest rate cuts in September.

The upcoming Federal Open Market Committee meeting on interest rates is scheduled for July 30-31. It is widely anticipated that the Fed will maintain the rates at their current level while monitoring any potential signs of a rate cut later in the year. 

On the political front, U.S. President Joe Biden announced the withdrawal of his bid for re-election on Sunday under pressure from fellow Democrats. He has supported Vice President Kamala Harris as the party’s candidate to challenge Republican Donald Trump in November.

Last week, concerns were raised about China’s oil demand following the country’s lower-than-expected economic growth of 4.7% in the second quarter, which has continued to put downward pressure on oil prices.

China recently released a policy paper outlining its ambitions, from developing advanced industries to improving the business environment.

Analysts have observed no immediate signs of structural changes in the world’s second-largest economy following the publication of the 60-point document, which came after the closed-door meeting of the Communist Party’s Central Committee last week.

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