Oil rises thanks to upbeat manufacturing data and rising tensions in the Middle East

Oil prices rose in early Asian trading on Tuesday, buoyed by signs of improving demand and escalating tensions in the Middle East, which pushed US futures to their highest level in five months in the previous session.

Brent crude futures for June delivery climbed 37 cents to $87.79 a barrel by 0046 GMT. Similarly, US West Texas Intermediate crude futures for May rose 32 cents to $84.03 per barrel.

The expansion of manufacturing activity in China in March, marking the first growth in six months, and a similar uptick in the United States for the first time in a year and a half, were seen as indications of high demand for oil. China, as the world’s largest importer of crude oil, and the United States, as the largest consumer, play significant roles in global oil demand dynamics.

In the Middle East, an Israeli strike on the Iranian embassy in Syria resulted in the death of seven military advisers, including three senior commanders. This event marked an escalation in the nearly six-month-long conflict and raised concerns about potential impacts on oil supplies.

Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) is scheduled to hold an online meeting of its Joint Ministerial Monitoring Committee on Wednesday to review market conditions and member compliance with production cuts.

It is anticipated that members will uphold the current supply policy, which involves a voluntary production cut of 2.2 million barrels per day until the end of the second quarter.