WASHINGTON (dpa-AFX) - Oil prices traded higher on Monday as the dollar dipped after the release of softer-than-expected PCE inflation data.
Benchmark Brent crude futures edged up by 0.3 percent to $72.80 a barrel in European trade, while WTI crude futures were up 0.7 percent at $69.92.
The dollar fell from its two-year high peak hit last week after a report from the U.S. Commerce Department on Friday showed moderate monthly price increases and the smallest gain in underlying inflation in six months, reviving hopes for further policy easing by the Federal Reserve next year.
Data showed PCE Inflation, the Fed's preferred reading on consumer price inflation, has increased 0.1 percent month-on-month in November versus expectations of a 0.2 percent increase.
The annual rate rose to 2.4 percent from 2.3 percent in the previous month but was still below the 2.5 percent anticipated by markets.
The core PCE eased to 0.1 percent from 0.3 percent in October and the yearly rate held steady at 2.8 percent.
The uptrend was also supported by optimism surrounding China's economic stimulus plans, the potential for stricter sanctions on Iran and Russia, and the passing of a crucial funding bill in the U.S. that helped avert a year-end government shutdown.
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