By Florence Tan

Oil Prices Increase Amid Cooling Inflation

SINGAPORE (Reuters) – Oil prices inched higher on Monday, along with other risk assets, after U.S. data showed cooling inflation, reviving hopes of further policy easing next year that will support global economic growth and oil demand.

Brent crude futures rose 26 cents, or 0.4%, to $73.20 a barrel by 0141 GMT. U.S. West Texas Intermediate crude futures climbed 31 cents, or 0.5%, to $69.77 per barrel.

"Risk assets, including U.S. equity futures and crude oil, have started the week on a firmer footing," IG markets analyst Tony Sycamore said, adding that cooler inflation data helped alleviate concerns following the Federal Reserve's hawkish rate cut.

"I think the U.S. Senate passing legislation to end the brief shutdown over the weekend has helped," he said.

Both oil benchmarks fell more than 2% last week due to worries about global economic growth and oil demand after the U.S. central bank signalled caution over further easing of monetary policy. Research from Asia's top refiner Sinopec indicating that China's oil consumption could peak in 2027 also weighed on prices.

Concerns about European supply eased with reports that the Druzhba pipeline—sending Russian and Kazakh oil to Hungary, Slovakia, the Czech Republic, and Germany—has restarted after technical issues on Thursday at a Russian pumping station. Shipments resumed on Saturday, according to Belarus' BelTa state news agency. On Sunday, Hungarian Foreign Minister Peter Szijjarto confirmed that supplies to the country had restarted.

Before the halt, the pipeline shipped 300,000 barrels per day of crude.

U.S. President Donald Trump called on the European Union on Friday to increase oil and gas imports from the U.S. or face tariffs on the bloc's exports. The European Commission expressed readiness to discuss strengthening their energy relationship with Trump.

Additionally, Trump threatened to reassert U.S. control over the Panama Canal, accusing Panama of charging excessive rates, which drew criticism from Panamanian President Jose Raul Mulino.

In the U.S., Baker Hughes reported that the number of operating oil rigs increased by one to 483 last week, the highest count since September.