Oil rises amid supply concerns overshadowed by weak Chinese data

Oil prices rose in Asian trading on Tuesday, after falling more than three percent in the previous session, as concerns about supplies sparked by the conflict in the Middle East overshadowed weak Chinese data.

By 0305 GMT, Brent crude futures for December, which expire on Tuesday, rose 36 cents, or 0.41 percent, to $87.81 per barrel. Brent crude futures for January, the most widely traded, rose 29 cents, or 0.34 percent, to $86.64 per barrel.

US West Texas Intermediate crude rose 34 cents, or 0.41 percent, to $82.65 per barrel.

Oil prices fell more than three percent on Monday as investors became more cautious ahead of the Federal Reserve meeting on Wednesday, despite the escalation of Israeli attacks on the Gaza Strip.

He continued, “If the matter develops into a large-scale invasion and Iran is involved, concerns about supply shortages may resurface.”

Data on manufacturing and non-manufacturing activities in China, which were weaker than expected, fueled fears of a slowdown in demand for fuel from the second largest oil consumer in the world.

Its official purchasing managers’ index defied expectations and fell again below the 50-point level that separates contraction from growth.

Prices received some support from concerns about the prospects for crude exports from Venezuela, amid uncertainty over the elections.

ING analysts said the Supreme Court’s suspension of the results of the opposition’s presidential primaries this month would likely raise questions about whether the United States would continue to ease sanctions on Venezuela.

They added that Washington recently decided to ease sanctions in exchange for a promise to hold more fair elections in 2024.

Markets are also awaiting the US Central Bank meeting, which affects domestic demand for fuel, despite the high probability of keeping interest rates steady, according to a survey conducted by the CME FeedWatch tool.