WASHINGTON (dpa-AFX) - Oil prices rose sharply on Monday, on expectations of higher demand during the summer driving season, and likely shortage in supplies due to geopolitical concerns, and production cuts by the Organization of Petroleum Exporting Countries and allies, collectively known as OPEC+.
Concerns about the likely impact of hurricanes on oil and gas production and consumption in the Americas contributed as well to the jump in oil prices.
West Texas Intermediate Crude oil futures ended higher by $1.84 or about 2.2% at $83.38 a barrel.
Brent crude futures climbed to $86.69 a barrel, gaining $1.68 or nearly 2%.
The dollar shed some ground, aiding oil's surge. The recent PCE data from the U.S. has raised the prospects of a rate cut by the Federal Reserve.
The U.S. PCE (Personal Consumption Expenditures) price index came in unchanged in May after ticking up 0.3% 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. central bank.
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