Brent crude futures fell eight cents to $83.48 a barrel by 0133 GMT. US West Texas Intermediate crude for April delivery fell ten cents to $78.36 a barrel.
The March West Texas Intermediate crude contract rose 26 cents to $79.45 a barrel, with traders preparing for this contract to expire during the day.
Tony Sycamore, a market analyst at IG, said in a note that crude oil markets were “slightly lower” in “quiet trading during the Presidents’ Day holiday in the United States, with demand concerns outweighing the ongoing geopolitical tension in the Middle East.” .
The Houthis continued their attacks on shipping lanes in the Red Sea and the Bab al-Mandab Strait, with at least four other ships being hit by drones and missiles since Friday. The Houthis said one of them, the Belize-flagged, British-registered, Lebanese-operated cargo ship Rubimare, was at risk of sinking in the Gulf of Aden, raising the stakes in their campaign to disrupt global shipping in solidarity with Palestinians in Gaza.
“Signs of strong demand in China also boosted sentiment,” ANZ analysts wrote in a note.
Tourism revenues in China rose 47.3 percent year-on-year and exceeded pre-Covid-19 levels during the Lunar New Year holiday, which ended on Saturday.
China also lowered the benchmark interest rate for real estate loans by more than expected on Tuesday, in an attempt to support the real estate market and economy.
However, price supportive factors did not fully offset demand concerns. Last week, the International Energy Agency's report revised downward its oil demand growth forecast for 2024 amid expectations that renewable energy will replace fossil fuels.
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