Oil prices rose on Tuesday driven by Middle East tensions and China’s economic stimulus, despite global growth concerns. Brent crude increased to $71.43 and U.S. crude to $67.90 per barrel. Factors influencing this include U.S. airstrikes in Yemen, retail sales recovery in China, and the Israeli-Palestinian conflict. Tariffs and geopolitical dynamics could further affect demand and prices.
On Tuesday, oil prices increased due to rising tensions in the Middle East and China’s economic initiatives, although concerns regarding global growth, U.S. tariffs, and ongoing conflict in Ukraine restrained the extent of the rises. Brent crude futures climbed by 36 cents (0.5%) to $71.43 per barrel, while U.S. West Texas Intermediate crude rose by 32 cents (0.5%) to $67.90 as of 07:00 GMT.
ING analysts noted that U.S. airstrikes targeting Houthi positions in Yemen and China’s economic stimulus plans were key factors influencing price increases. The Chinese government recently unveiled an action plan aimed at boosting domestic consumption through income increases and childcare subsidies, igniting additional demand.
Data from Monday indicated stronger-than-expected retail sales growth for January and February. However, industrial production declined, and the urban unemployment rate hit a two-year high amidst these positive retail indicators. Meanwhile, in China, refinery consumption grew by 2.1% year-over-year during January and February, aided by a new refinery’s operations and increased demand linked to the Lunar New Year holiday.
Heightened prices also stemmed from U.S. President Donald Trump’s threats to intensify military actions against the Houthis if they continued their maritime aggressions, implicating Iran in potential new attacks. Furthermore, the ongoing Israeli-Palestinian conflict escalated, with Israel’s recent airstrikes on Gaza resulting in significant casualties and ending a brief cessation of violence following January’s ceasefire.
The OECD warned that tariffs imposed by the Trump administration could dampen growth across the U.S., Canada, and Mexico, potentially leading to decreased global energy demand. Meanwhile, Venezuela’s PDVSA indicated its commitment to maintain oil production and exports in partnership with Chevron, despite an upcoming expiration of a U.S. license. The market is closely monitoring expected discussions between Trump and Russian President Vladimir Putin about the Ukraine conflict, with hopes that a peace agreement could facilitate relaxing sanctions on Russia and restoring its oil output to the global market, potentially lowering prices.
In light of rising tensions in the Middle East and China’s economic upgrades, oil prices experienced an increase this past Tuesday. Factors such as U.S. airstrikes in Yemen, robust retail sales in China, and growing refinery consumption fueled these price hikes. However, persistent concerns about global economic stability, tariffs, and geopolitical conflicts continued to play a moderating role in market dynamics. Overall, analyst forecasts and geopolitical developments remain crucial for understanding future oil price movements.
Original Source: www.jordannews.jo
