Both Brent and WTI up over 0.5 from weekly declines
Renewed hope on rate cuts after a benign inflation reading
Market surplus to drag down oil prices in 2025

SINGAPORE, Dec 23 Reuters Oil prices rose on Monday as lowerthanexpected U.S. inflation data revived hopes for further policy easing, although the outlook for a supply surplus next year weighed on the market.

Brent crude futures rose 37 cents, or 0.5, to 73.31 a barrel by 0729 GMT. U.S. West Texas Intermediate crude futures climbed 40 cents, or 0.6, to 69.86 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 Reserve39;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 on concerns about global economic growth and oil demand after the U.S. central bank signalled caution over further easing of monetary policy. Research from Asia39;s top refiner Sinopec pointing to China39;s oil consumption peaking in 2027 also weighed on prices.

Money managers raised their netlong U.S. crude futures and options positions in the week to Dec. 17, the U.S. Commodity Futures Trading Commission CFTC said on Friday.

Concerns about European supply eased on reports the Druzhba pipeline, which sends Russian and Kazakh oil to…