LONDON, July 24 Reuters Oil prices rose on Monday as tightening supply and hopes for Chinese stimulus underpinned Brent at well above 80 a barrel, even as traders expected more rate hikes from U.S. and European central banks.

Brent crude futures rose 44 cents, or 0.6, to 81.51 a barrel by 11 GMT. U.S. West Texas Intermediate WTI crude was at 77.51 a barrel, also up 44 cents, or 0.5.

The benchmarks rose 1.5 and 2.2 respectively last week, their fourth straight of week of gains, as supply is expected to tighten following OPEC cuts. Fighting also escalated last week in Ukraine after Russia withdrew from a U.N.brokered safe sea corridor agreement for grain exports.

Oil39;s rise has reflected tightening conditions as Saudi oil output cuts impact the market … even as summer demand has been somewhat stronger for gasoline and jet fuel, Citi Research said in a note.

The bank said it sees some upside for oil over the summer and forecast an average price in the third quarter of 83 a barrel.

While another Fed rate hike this week may drive some shortterm price volatility, we expect tightening market conditions on OPEC39;s supply cuts and increasing market speculation of further stimulus in China to continue to push prices higher through 3Q23, analysts from National Australian Bank said in a note.

Investors have priced in quarterpoint hikes from the Federal Reserve and European Central Bank this week so the focus will be on what Fed Chair Jerome Powell and ECB President…