Crude oil prices opened the week with a gain, boosted by positive economic data from China. The data showed that manufacturing activity grew at its fastest pace in three months in February, signaling a strong outlook for oil demand.
As of the latest update, Brent crude was priced at $73.11 per barrel, while West Texas Intermediate stood at $70.07 per barrel—both showing a modest increase from Friday’s closing prices.
China’s purchasing managers’ index (PMI) for February rose to 50.2, up from 49.1 in January, surpassing analysts’ expectations of 49.9. Readings above 50 indicate expansion, while those below 50 suggest a contraction in activity. This positive news raised hopes for stronger oil demand.
Meanwhile, recent tensions between U.S. President Trump and Ukrainian President Zelensky have made a peace deal for Ukraine seem less likely. However, European leaders’ support for Zelensky over the weekend provided some optimism for oil markets.
“Increased uncertainty regarding the U.S. position has made a peace deal seem more distant, which impacts energy market expectations for a potential easing of sanctions,” ING analysts noted. “This shift is reflected in oil price movements, with Brent rising more than 1%.”
Oil traders are also watching the potential impact of U.S. tariffs on oil imports from Canada and Mexico. Last year, Canadian oil made up nearly two-thirds of U.S. oil imports.
In another bullish development, a recent Ukrainian drone attack on a Russian refinery has raised concerns about the stability of Russian fuel supply to international markets.
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