Oil Prices Rise on China and Mideast Tensions

2 Dec 2024 , 09:28 AM

As tensions in the Middle East increased on Monday, oil prices increased marginally due to positive factory activity in China, the world’s second-largest oil consumer, and Israel’s resumption of its attacks on Lebanon in defiance of a ceasefire agreement.

U.S. West Texas Intermediate crude was up 9 cents, or 0.1%, to $68.09 a barrel, while Brent crude futures had increased 8 cents, or 0.1%, to $71.92 a barrel.

As Donald Trump escalates his trade threats, prices increased after an official survey revealed that China’s factory output grew marginally for a second consecutive month in November, indicating that a flurry of stimulus is finally starting to take effect.

Both Israel and Lebanon have accused one another of violating the ceasefire, which went into force on Wednesday.

According to a statement from the Lebanese Health Ministry, two Israeli attacks in south Lebanon injured a number of persons. As President Bashar al-Assad pledged to smash insurgents who had rushed into the city of Aleppo, airstrikes also increased in Syria.

Despite OPEC+’s anticipated extension of output cutbacks, both benchmarks reported a weekly decrease of nearly 3% last week due to waning worries about supply risks from the Israel-Hezbollah conflict and projections of surplus supply in 2025.

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