Oil prices saw modest upward movement in Asian trading on Tuesday, as global growth concerns were offset following China's stimulus measures announced earlier in the week.
By 3:30 pm AEDT (4:30 am GMT), Brent crude futures added $0.20 or 0.3% to US$71.27 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $0.19 or 0.3% to $67.77 per barrel.
Prices also found support from President Donald Trump’s commitment to continue military action against Yemen’s Houthis unless the group ceases attacks on vessels in the Red Sea.
ANZ analysts elaborated in a note to clients: "President Trump said the administration will view maritime attacks by Houthi rebels as equivalent to direct affronts by Tehran.
"This comes amid a broader strategy to curb Iran’s nuclear program. Its strategy of ‘maximum pressure’ could significantly impact Iran’s oil production.
"We expected losses could range in the order of 1mb/d, offsetting gains from OPEC as it phases out voluntary production cuts."
On Monday, Chinese economic data offered mixed signals, as retail sales growth accelerated in January and February, providing some optimism.
However, factory output declined, and the urban unemployment rate rose to its highest level in two years, raising concerns over broader economic stability.
Meanwhile, markets focused on Tuesday’s meeting between Trump and Russian President Vladimir Putin regarding efforts to end the Ukraine war.
Highlighting further demand concerns, the Organisation for Economic Co-operation and Development (OECD) warned that Trump’s tariffs would slow growth in the U.S., Canada, and Mexico, potentially dampening global energy demand.
