Oil prices stable as data offsets surplus concerns

Oil prices stabilized on Monday after last week's losses, as lower-than-expected U.S. inflation data helped ease investor concerns about a potential supply surplus in 2025.

By 1300 GMT, Brent crude futures were down 0.52% at $72.56 per barrel, and U.S. West Texas Intermediate crude futures fell 0.49% to $69.12 per barrel. Early gains were reversed by a stronger U.S. dollar, which rose to two-year highs.

Last week, oil prices dropped over 2% on concerns about global economic growth and oil demand, compounded by Sinopec's forecast of a peak in China's oil consumption by 2027.

Additionally, Macquarie analysts predicted a supply surplus in 2025, keeping Brent prices around $70.50 per barrel. European supply concerns eased after the Druzhba pipeline resumed operations.