By Florence Tan
SINGAPORE (Reuters) – Oil prices edged higher on Monday, along with other risk factors, after US data showed an increase in cooling prices, reviving hopes of a policy stimulus next year that will support global economic growth and oil demand.
Futures rose 26 cents, or 0.4%, to $73.20 a barrel by 0141 GMT. US West Texas Intermediate crude futures rose 31 cents, or 0.5%, to $69.77 a barrel.
“Risk assets, including US equity futures and , have started the week at a solid level,” IG market analyst Tony Sycamore said, adding that the mild inflation data helped reduce concerns following the Federal Reserve's hawkish rate cut.
“I think the fact that the US Senate passed legislation to end the weekend shutdown helped,” he said.
Both oil benchmarks fell more than 2% last week on concerns about global economic growth and oil demand after the US central bank signaled a warning against further easing monetary policy. Research from Asia's top refiner Sinopec (OTC:) pointing to higher China oil consumption in 2027 also weighed in on prices.
Concerns about European supply were reduced by reports of the Druzhba pipeline, which sends Russian and Kazakh oil to Hungary, Slovakia, the Czech Republic and Germany, restarted after stopping on Thursday due to technical problems at a Russian pumping station.
Shipments resumed on Saturday, according to Belarus' BelTa news agency. On Sunday, Hungarian Foreign Minister Peter Szijjarto said that supplies of Druzhba to the country had resumed.
Before the shutdown, the pipeline was shipping 300,000 barrels of crude a day.
US President Donald Trump on Friday urged the European Union to increase US oil and gas exports or face tariffs on sales outside the bloc.
The European Commission said it was ready to discuss with Trump how to strengthen what it described as already strong ties, including in the energy sector.
Trump also threatened to restore US control of the Panama Canal on Sunday, accusing Panama of charging exorbitant prices to use the Central American passage and drawing harsh punishment from Panamanian President Jose Raul Mulino.
In the US, the crude oil index rose to 483 last week, the highest since September. Baker Hughes (NASDAQ:) reported on Friday.