Oil prices climbed on Monday, supported by stronger-than-expected manufacturing data from China, the world’s largest crude importer, which bolstered confidence in fuel demand.
By 3:30 pm AEDT (4:30 am GMT), Brent crude rose $0.40, or 0.6%, to $73.21 per barrel, while U.S. West Texas Intermediate (WTI) crude increased by $0.40, or 0.6%, to $70.16 per barrel.
The gains followed official data showing that China’s manufacturing activity expanded at its fastest pace in three months in February, driven by new orders and increased production.
Broader market sentiment improved following a weekend summit where European leaders expressed strong support for Ukrainian President Volodymyr Zelenskiy.
This followed Zelenskiy’s recent dispute with U.S. President Donald Trump, which led to the abrupt conclusion of his visit to Washington.
Speaking on Sunday, Zelenskiy expressed hope for repairing ties with Trump while emphasising the importance of continued diplomatic talks. He also reaffirmed his readiness to finalise a minerals deal with the U.S.
Meanwhile, concerns over supply disruptions persist, particularly after a fire at a refinery in the Russian city of Ufa, raising fears about potential impacts on Russian refined product exports.
"The uncertainty over Trump’s trade and foreign policies are also increasing the uncertainty over the supply outlook. Adding to this were reports that as much as 30% of oil exports from a major Kazakh pipeline to the Black Sea may be halted after a Ukrainian drone attacked a pumping station in Russia," ANZ analysts noted in a client report.
In Iraq, U.S. officials have urged authorities to resume oil exports from the semi-autonomous Kurdistan region. However, eight international oil firms operating in the area said on Friday they would not restart shipments through Turkey’s Ceyhan port due to a lack of clarity on commercial agreements and assurances of payment for both past and future exports.
