Oil prices remained close to two-week lows on Tuesday, pressured by weak economic data from China and warmer weather forecasts that dampened the outlook for global crude demand.
By 3:25 pm AEDT (3:25 am GMT), Brent crude oil futures rose $0.23 or 0.3%, to $77.31 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by $0.16 or 0.2%, to $73.34 per barrel.
Concerns over global crude demand were exacerbated after China, the world’s largest oil importer, reported an unexpected contraction in manufacturing activity on Monday.
China’s crude demand outlook also faces headwinds from fresh U.S. sanctions targeting Russian oil, while several independent Chinese refineries halting operations due to new tariff and tax policies.
In the United States, warmer-than-expected weather forecasts for the week have reduced demand for heating fuels, reversing the natural gas and diesel price spikes seen during the recent extreme cold.