Oil Prices Hold Steady Amid Middle East Tensions

1 Oct 2024 , 09:37 AM

Oil prices remained stable in early trade on Tuesday, as the potential of increased supply entering the market amid weak global demand growth outweighed concerns that the intensifying Middle East conflict might hamper exports in the key producing region.

Brent crude futures for December delivery rose 13 cents, or 0.18%, to $71.83 a barrel. US West Texas Intermediate oil futures for November delivery rose 11 cents, or 0.16%, to $68.28 per barrel.

Oil markets have been pressured by lower-than-expected demand growth this year, particularly in China, the world’s largest oil importer. On Monday, data indicated that the country’s manufacturing activity fell for the fifth month in a row, adding to demand concerns.

OPEC+, which includes OPEC members and allies including Russia, plans to increase output by 180,000 barrels per day in December.

According to a preliminary Reuters poll, crude oil and fuel stockpiles in the United States were predicted to shrink by approximately 2.1 million barrels last week, ending on September 27.

The poll was conducted ahead of the American Petroleum Institute’s industry report, which is due at 4:30 p.m. EDT (2030 GMT) on Tuesday.

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