08:52 AM EDT, 03/25/2024 (MT Newswires) -- Oil prices rose early on Monday following three losing sessions on expectations demand will rise with interest-rate cuts on the horizon while supply remains constricted with OPEC+'s 2.2-million barrels per day of voluntary cuts continuing.

West Texas Intermediate crude oil for May delivery was last seen up US$0.25 to US$80.88 per barrel, while May Brent crude, the global benchmark, was up US$0.25 to US$85.68.

The rise comes as the Federal Reserve and other central banks are expected to begin a cycle of lowering interest rates with inflation slowing in most markets, The cuts are expected to spur economies and raise demand, even as OPEC+ continues to restrict production.

"Although the retracement towards the end of last week might have been somewhat puzzling the general trend is still firmly up; Brent has risen from $72/bbl back in December last year to almost $88/bbl last Tuesday. Recession has been, it appears, successfully fought off, inflation is under control, the global economy is set to expand, and developments both on the supply and the demand sides of the oil coin foretell depleting global oil inventories this year,," PVM Oil Associates noted.

Geopolitical concerns are also supporting prices, as Israel continues its war on Hamas and Yemen's Houthi militants attack Red Sea shipping. while Ukraine's disabling attacks on Russia's refineries are raising risks for the supply of refined products, with New York Harbor gasoline futures up 18% in the past month. The deadly terror attacks on a Moscow concert hall on Friday is also keeping traders on edge.

"Brent ... holds above key support as Russia attacks ads to global tensions while Ukraine's successful attacks on Russian oil refineries are adding risks to global energy supplies," Saxo Bank noted.