Oil rose on Monday as upbeat manufacturing data from China, the world’s biggest crude importer, led to renewed optimism for fuel demand, although uncertainty about a Ukraine peace deal and global economic growth from potential U.S. tariffs loomed.
Brent crude climbed 36 cents, or 0.5%, to $73.17 a barrel by 0439 GMT while U.S. West Texas Intermediate crude was at $70.10 a barrel, up 34 cents, or 0.5%.
Prices rose after official data on Saturday that showed that China’s manufacturing activity expanded at the fastest pace in three months in February as new orders and higher purchase volumes led to a solid rise in production.
Investors are eyeing China’s annual parliamentary meeting, which starts March 5, for further measures to support its battered economy. IG market analyst Tony Sycamore said one of the possible drivers for rising prices was that “the China NBS manufacturing PMI moved back into expansionary territory over the weekend.”
However, he cautioned that the country’s economic outlook may not be inspiring, with another round of tariffs on exports to the U.S. set to start on March 4.
