Oil prices rose on Tuesday, supported by tensions in the Middle East and China’s plans to boost its economy, despite concerns about global growth, U.S. tariffs, and uncertainty over ceasefire talks in Ukraine, which limited the gains.
اضافة اعلان
Brent crude futures rose by 36 cents (0.5%) to $71.43 per barrel by 07:00 GMT, while U.S. West Texas Intermediate crude futures rose by 32 cents (0.5%) to $67.90.
According to a research note by ING analysts, U.S. airstrikes on Houthi positions in Yemen, along with China’s plans to stimulate consumption, were contributing factors. On Sunday, the Chinese government announced a special action plan to support domestic consumption, which includes raising incomes and providing childcare subsidies.
Economic data released on Monday showed stronger-than-expected retail sales growth for January and February, despite a decline in industrial production and the urban unemployment rate reaching its highest level in two years.
In China, the world’s largest oil importer, refinery consumption rose by 2.1% during January and February compared to the previous year, supported by the operation of a new refinery and increased demand during the Lunar New Year holiday.
Prices also rose due to threats from U.S. President Donald Trump to continue attacks on the Houthis in Yemen if they did not stop targeting ships in the Red Sea, stating that he would hold Iran responsible for any new attacks.
Regarding the Israeli-Palestinian conflict, Israel launched airstrikes on Gaza, resulting in at least 200 deaths, according to the Palestinian Ministry of Health, ending a period of calm that lasted for weeks following the January ceasefire.
The Organization for Economic Cooperation and Development (OECD) said on Monday that the tariffs imposed by Trump would negatively affect growth in the U.S., Canada, and Mexico, which could reduce global energy demand.
Venezuelan oil company PDVSA plans to continue producing and exporting oil through its partnership with Chevron after the expiration of the U.S. license next month, according to a document seen by Reuters on Monday.
The market is awaiting talks between Trump and Russian President Vladimir Putin about ending the war in Ukraine, with the belief that any potential peace agreement could involve easing sanctions on Russia and returning its oil supplies to global markets, which could lower prices.
-- (Agencies)
