Oil prices ticked up but hovered near a two-week low on Tuesday after weak economic data from China and warming weather forecasts elsewhere soured the demand outlook.
Brent crude oil futures rose by 42 cents, or 0.54%, to $77.5 per barrel by 0430 GMT. U.S. West Texas Intermediate crude futures were up 34 cents, or 0.46%, to $73.51.
Brent settled on Monday at its lowest since Jan. 9, while WTI hit its lowest since Jan. 2. China, the world’s largest importer of crude oil, reported on Monday an unexpected contraction in manufacturing activity in January, adding to concerns over global crude demand growth.
“The general tone of caution in the risk environment, coupled with weaker Chinese PMI numbers that cast further doubt on China’s oil demand outlook, may serve as a drag on oil prices,” IG analyst Yeap Jun Rong said.
China’s crude oil demand is also expected to be hit by the latest U.S. sanctions on Russian oil trade.
FGE analysts see refineries in Shandong losing up to 1 million barrels per day of crude supply in the near-term amid a ban imposed by the Shandong Port Group on U.S.-sanctioned tankers.
