Oil prices rise over 1% ahead of inflation data after downbeat week

According to reports, the Brent crude July contract settled $1 (1.2 percent) higher at $83.12 a barrel, while the more active August contract rose $1.04 to $82.88, and the United States West Texas Intermediate (WTI) crude futures were up 93 cents at $78.65.

Last week, Brent lost about 2 percent and WTI nearly 3 percent after Federal Reserve minutes showed some officials would be willing to increase interest rates further if it were deemed necessary to control stubbornly high inflation, as reported by Reuters.

Reuters reported, citing key European Central Bank (ECB) policymakers, that the ECB has room to cut interest rates as inflation slows but must take its time in easing policy.

Figures for inflation in the euro zone are due on Friday and economists believe an expected tick up to 2.5 percent should not stop the ECB from easing policy next week, reports Reuters.

The US personal consumption expenditures index expected this week will be in the spotlight for further signals about interest rate policy as the index, due to be released on May 31, is viewed as the US Federal Reserve's preferred measure of inflation, according to reports.

Meanwhile, German inflation data on Wednesday and euro zone readings on Friday will also be monitored for signs of a European rate cut that traders have pencilled in for next week, as per reports.

Reuters reported that eyes will also be trained on the coming meeting of the OPEC+ group of oil producers comprising the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia.

The OPEC+ meeting is scheduled to be held online on June 2, according to reports.