Oil prices remain mixed on Tuesday, after posting losses in the previous session. General economic concerns outweighed ongoing tensions in the Middle East.
Brent crude futures rose 3 cents, or about 0.04%, to $78.15 a barrel at 06:47 GMT. The contract closed 14 cents lower on Monday.
West Texas Intermediate (WTI) crude fell 23 cents, or 0.32%, to $72.45 a barrel following the U.S. public holiday on Monday.
Fears that economic growth will weaken have weighed on sentiment across the commodity complex. This was despite rising tensions in the Red Sea.
Asian stocks fell to a one-month low, U.S. stock futures fell and the dollar rose as hawkish comments from central bankers tempered interest rate cut expectations.
Some concerns about how China’s demand might play out in the near term also weighed on oil prices after the country’s central bank left its medium-term policy rate (MLF) unchanged on Monday.
Yesterday, China’s central bank’s refusal to cut the 1-year MLF interest rate dampened expectations for more significant stimulus measures from China’s top policymakers, leading to a weaker demand narrative for oil, limiting further potential upside.
Meanwhile, extremely cold weather is also on the agenda in the United States, which could limit oil production and also affect major refinery operations.
Currently, the wait-and-see sentiment in the oil market is relatively heavy, with the rise of geopolitical conflicts offset by the earlier stock buildup in the US.
Official inventory data from the U.S. Energy Information Administration, which was delayed a day this week due to Monday’s holiday, is expected to be released on Thursday.
In a statement made on Monday, it was said that the Houthi movement in Yemen in the Middle East will expand its targets in the Red Sea region to include US ships.
More oil tankers moved away from the southern Red Sea on Monday, despite rising shipping costs and increasing time needed to transport oil.
