Oil is rising as recession fears begin to recede

Oil prices rose on Monday as fears of a recession in the United States eased and shifted market focus to tight supply, supporting prices after they posted a weekly decline for three consecutive weeks for the first time since November.

A better-than-expected US jobs report for April helped oil prices rise 4 percent on Friday, although labor market strength could prompt the Federal Reserve to keep interest rates higher for longer.

Brent crude rose $1.09, or 1.5%, to $76.39 a barrel by 0823 GMT. US West Texas Intermediate crude also rose $1.03, or 1.4 percent, to $72.37.

Brent crude ended last week down about 5.3 percent, while US crude fell 7.1 percent, even after prices rebounded on Friday. Both benchmarks have fallen for three consecutive weeks for the first time since November.

A round of voluntary production cuts from some countries in the OPEC + coalition, which includes the Organization of the Petroleum Exporting Countries (OPEC) and its allies, begins this month. The next meeting of the coalition is on the fourth of June.

On Wednesday, the United States is expected to release its consumer price index report for April, which could influence the Federal Reserve’s decision on interest rates.

OPEC releases its latest monthly Oil Market Report on Thursday, which will provide an updated reading of its supply and demand forecasts.