Oil Prices Rise on Fed Rate Cut Expectations

Oil prices extended gains on Monday on fears that an escalation in the Middle East could disrupt regional oil supplies, while imminent US interest rate cuts lifted the global economic and fuel demand outlook. Brent crude futures climbed 37 cents, or 0.5%, to $79.39 a barrel, while US crude futures were up 36 cents, or 0.5%, to $75.19 a barrel. Both oil benchmarks gained more than 2% on Friday after US Federal Reserve Chair Jerome Powell endorsed an imminent start to interest rate cuts. Still, oil prices were down last week as a poor outlook for major economies weighed on fuel demand. The US Energy Department said on Friday it bought nearly 2.5 million barrels of oil to help replenish the Strategic Petroleum Reserve. Source: Qatar News Agency