Oil prices edge higher after two weeks of losses, WTI tests $80

With U.S. oil futures approaching the crucial $80 per barrel threshold, oil prices increased marginally in early Asian trade on Monday as attention shifted to economic readings from the world’s largest oil importer due this week. Prices were still suffering from two straight weeks of declines as hawkish Federal Reserve signals and indications of rising U.S. production dampened hopes for significant supply cuts from Saudi Arabia and Russia. The world’s largest oil importer, China, announced more measures over the weekend to boost the stock market and the real estate market. Analysts said the new policies showed Beijing was still prepared to provide additional economic support, despite the fact that the real economic effects of the new measures are anticipated to be short-lived. Markets were able to ignore Friday’s hawkish remarks from Federal Reserve Chair Jerome Powell because to optimism over additional Chinese stimulus measures. Powell issued a warning that higher interest rates will likely be required to combat persistent inflation. The dollar reached a nearly three-week high following Powell’s remarks, which restrained any significant increases in oil prices. By 21:10 ET (01:10 GMT), West Texas Intermediate crude prices increased 0.1% to $79.94 a barrel, while Brent oil futures increased marginally to $83.97 a barrel. Both contracts experienced weekly declines of around 2%. 

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