China's demand and Middle East concerns sent oil prices to a three-week high

China's demand and Middle East concerns sent oil prices to a three-week high

At 01:33 GMT, Brent futures dropped 8 cents to $83.48 per barrel. The price per barrel of U.S. West Texas Intermediate (WTI) oil for April delivery dropped by 10 cents to $78.36. In anticipation of that contract's daytime expiry, traders saw a 26-cent increase in the March WTI contract to $79.45 a barrel.

Early Asian trade on Tuesday saw little movement in oil prices as they reached a three-week high due to growing Middle East tensions and a rebound in Chinese demand.

At 01:33 GMT, Brent futures dropped 8 cents to $83.48 per barrel. The price per barrel of U.S. West Texas Intermediate (WTI) oil for April delivery dropped by 10 cents to $78.36. In anticipation of that contract's daytime expiry, traders saw a 26-cent increase in the March WTI contract to $79.45 a barrel.In a report, IG Markets analyst Tony Sycamore said, "Crude markets were somewhat lower in quiet trading amid the US President's Day holiday as well as demand concerns outweighing Middle Eastern geopolitical tensions."

Iran-affiliated With another missile strike on Friday, the Houthis resumed their assault on the Red Sea's maritime channels as well as the Bab al-Mandab Strait, sinking at least four more ships. The Houthis raised the stakes in their attempt to disrupt global commerce in support of the Palestinians by claiming that one of them, the British-registered, Lebanese-managed Rubymar cargo ship in the Gulf of Aden, was in risk of sinking. Gaza.

ANZ analysts said in a report that "signs of strong demand in China also boosted sentiment."

Over the national Lunar New Year vacation, which concluded on Saturday, tourism income in China rocketed past pre-COVID levels and climbed by 47.3% year over year.

China lowered its mortgage benchmark reference rate on Tuesday, more than anticipated, in an effort to support its struggling real estate sector and overall economy.

Price-supportive elements did not, however, totally allay worries about demand. The International Energy Agency (IEA) downgraded its 2024 oil demand growth prediction in a pessimistic report last week, citing forecasts that renewable energy would displace fossil fuel consumption.