Oil prices closed higher on Monday to a one-week high, driven by expectations of increased summer fuel demand. Brent futures rose 2.5% to $81.63 up $2.01 per barrel, and U.S. West Texas Intermediate (WTI) crude climbed 2.9% to $77.74 up $2.21 per barrel, both reaching their highest close since May 30. Despite this optimism, there are broader concerns. Higher interest rates from the Fed, implemented to control inflation, have increased borrowing costs and could slow economic growth, thereby reducing oil demand. Additionally, a stronger U.S. dollar makes oil more expensive for international buyers, potentially lowering demand. Investor focus now shifts to the upcoming U.S. consumer price index data and the Fed’s policy meeting. Expectations for rate cuts in September have diminished after strong job data, with current projections suggesting only one rate cut this year. Market participants are also awaiting oil supply and demand reports from the U.S. EIA, OPEC, and the International Energy Agency later in the week.