LONDON (Reuters) - Oil prices recovered on Monday after two days of decline, following equity markets, amid expectations of more stimulus from central banks that helped ease recession fears.
But oil gains have been constrained by OPEC's reduction in its outlook for global demand for the remainder of the year as economic growth slows.
The group also cited challenges in 2020, as rivals pump more crude, reinforcing the argument for maintaining an OPEC-led agreement to curb supplies.
Brent crude ended 41 cents, or 0.7%, higher at $ 58.64 an ounce, after falling 2.1% in Thursday's session and 3% in Wednesday's session.
US West Texas Intermediate (WTI) crude futures rose 40 cents, or 0.73 percent, to settle at $ 54.87 a barrel after falling 1.4 percent in Thursday's session and 3.3 percent in Wednesday's session.
Ahead of the monthly OPEC report, Brent touched a session high of $ 59.5 a barrel. US crude was trading at $ 55.67 as investors anticipated further interest rate cuts from the Federal Reserve and moves by the European Central Bank next month. -To counteract weak growth.
Both benchmarks ended last week on small gains after two consecutive weeks of losses.
BNP Paribas cut its 2019 forecast for US crude by $ 8 to $ 55 a barrel and Brent crude by $ 9 to $ 62 a barrel, citing an economic slowdown amid a trade dispute.
The price of Brent is still about 10% above its level at the beginning of this year, supported by cuts in supplies from OPEC and its allies, led by Russia, which is a group known as «OPEC +».
In July, OPEC + agreed to extend oil production cuts until March 2020 to support prices.