Oil prices are hovering near three-week highs due to rising tensions in the Middle East and recovering demand in China.
Brent futures were down 11 cents at $83.45 a barrel by 04:13 GMT. WTI crude oil for April delivery fell 11 cents to $78.35 per barrel. The March WTI contract rose 36 cents to $79.55 a barrel as traders braced for the contract to expire later.
Due to a US public holiday, there was no settlement for WTI on Monday.
The Houthis have further stepped up their campaign to disrupt global shipping in solidarity with the Palestinians in the struggle for Gaza. The Houthis continued their attacks on shipping lanes in the Red Sea and Bab al-Mandeb Strait; At least four more ships have been hit by drone and missile attacks since Friday. It was said that the Belize-flagged, British-registered, and Lebanese-controlled Rubymar cargo ship in the Gulf of Aden was in danger of sinking.
Signs of strengthening demand in China also increased sentiment, according to analysts.
Tourism revenues in China rose 47.3% year-on-year and above pre-COVID levels during the national Lunar New Year holiday, which ended Saturday.
China also cut its mortgage benchmark interest rate more than expected on Tuesday in a bid to support its real estate market and economy.
However, price-supporting factors did not eliminate demand concerns. Last week’s bearish report from the International Energy Agency (IEA) revised its 2024 oil demand growth forecast downwards on expectations that renewable energy will replace fossil fuel use.
