Oil prices settled higher on Monday, with Brent crude futures rising 2% to $86.41 a barrel and U.S. West Texas Intermediate crude futures climbing 2.3% to settle at $83.387 a barrel. The increase in oil prices was driven by stronger-than-expected Chinese manufacturing activity data, indicating a recovery in the world's second-largest economy and major crude importer. This positive tone was further supported by a fall in the PCE price index, which showed inflation easing in May, leading to optimism that U.S. inflation was cooling. Traders are now awaiting fresh U.S. inventory data and monitoring the impact of hurricanes on oil and gas production and consumption in the Americas. [62b086e2] Oil prices rose on Monday as stronger-than-expected Chinese manufacturing activity data boosted demand optimism. Brent crude futures rose 2 percent to $86.41 per barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 2.3 percent to $83.387 per barrel. The positive tone was extended after the Caixin Manufacturing Purchasing Managers’ Index (PMI) rose to 51.8 in June, beating expectations. A fall in the U.S. dollar index also helped the oil price rally, making the commodity cheaper for international buyers. Traders are now looking ahead to the weekly U.S. petroleum report due on Wednesday to gauge summer demand and crude inventories. Additionally, traders are monitoring the impact of hurricanes on oil and gas production and consumption in the Americas as the Atlantic hurricane season has begun. The Energy Information Administration reported that oil production and demand for major products rose to a four-month high in April. [13a32f95]