Oil prices increased by approximately 2% on Tuesday, reaching a three-week high, spurred by China’s monetary stimulus and rising concerns over Middle East conflicts affecting supply. Brent crude futures rose by $1.14 (1.5%) to $75.04 a barrel, while U.S. West Texas Intermediate (WTI) crude gained $1.16 (1.7%) to $71.53.
The boost in oil prices comes after China’s government announced its largest stimulus package since the pandemic, aiming to revive its economy. Analysts noted that ongoing geopolitical tensions, particularly in the Middle East following an Israeli airstrike in Beirut, are also influencing market sentiments.
In the U.S., oil producers are evacuating staff from offshore platforms as a hurricane threatens to impact oil production in the Gulf of Mexico. Meanwhile, weekly U.S. oil storage data is expected to show a withdrawal of approximately 1.2 million barrels from storage, indicating a continued decline in crude stocks.
