Amidst economic fears and worries around the world, prices of crude oil appreciated around the world.
Brent crude and West Texas Intermediate (WTI) crude both rose earlier on Tuesday. Â
Global oil prices rose slightly on Tuesday, but remained below $90 a barrel as weak Chinese economic data and the Middle East conflict remained subdued.
December Brent crude futures, were 85 cents, higher at $88.30 a barrel, ahead of their expiry later on Tuesday.
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The more heavily traded January contract climbed 59 cents, to $86.94. While the U.S. West Texas Intermediate crude rose 61 cents, to $82.92.
Both Brent contracts traded $1 higher earlier in the day.
Eurozone Inflation
Euro zone inflation was at its lowest level in two years in October, falling to 2.9% from 4.3% in September according to Eurostat’s flash estimate.
Meanwhile, weaker-than-expected manufacturing and non-manufacturing activity data in China stoked fears of slowing fuel demand from the world’s No. 2 oil consumer.
Its official purchasing managers’ index missed a forecast and dipped back below the 50-point level separating contraction from expansion.
China’s fourth quarter fuel demand is expected to rise 10% year-on-year, PetroChina president Huang Yongzhang said on Tuesday.
Oil prices had fallen on Monday in part “because Israel’s ground offensive in the Gaza Strip is so far proceeding only gradually and has thus not yet sparked any further escalation of the Middle East conflict,” Commerzbank analysts said.
Investors Tread Cautiously
But investors continue to be wary of other countries in the region entering the conflict.
“Given the recalcitrant attitude of the warring parties and the potentially protracted and explosive nature of the ongoing conflict the Middle East premium will likely put a floor under the prices in the foreseeable future,” PVM’s Tamas Varga added.
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Israel’s Prime Minister, Benjamin Netanyahu, dismissed calls for a halt to fighting to ease a humanitarian crisis on Tuesday, as Israeli forces attacked Hamas in the network of tunnels under the Palestinian exclave.
Markets were also keeping a close eye on a U.S. central bank meeting ending on Wednesday, despite a high likelihood it will keep interest rates steady, according to a poll by CME’s Fedwatch tool.
