WASHINGTON (dpa-AFX) - Oil prices inched higher on Monday as in-line U.S. inflation data released on Friday reinforced investor expectations for at least one interest rate cut later this year.
Benchmark Brent crude futures rose 0.4 percent to $85.36 a barrel, while WTI crude futures were up 0.4 percent at $81.88.
The U.S. PCE (Personal Consumption Expenditures) price index came in unchanged in May after ticking up 0.3 percent in April.
The annual rate of core inflation growth slowed to 2.6 percent, marking its lowest reading since March 2021 and rekindling hopes for an early rate cut by the U.S. Federal Reserve.
Lower borrowing costs will make crude oil cheaper in the market thus boosting its demand in the world market.
A weaker dollar also lent some support after the first round of voting left Le Pen's National Rally looking short of securing a majority in parliament.
On the data front, a private sector survey showed China's manufacturing activity grew at the fastest pace in more than three years in June.
The data contrasted with official PMI readings that showed China's factory activity contracted again and services activity slowed to a five-month low.
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