(MENAFN) Oil rates increased on Tuesday due to ongoing tensions in the Middle East and positive economic indicators from China, the world's largest oil importer.
Brent crude, the international benchmark, was trading at USD90.50 per barrel, marking a 0.44 percent rise from the previous session's closing price of USD90.10 per barrel. Similarly, West Texas Intermediate (WTI), the American benchmark, rose to USD85.56 per barrel, up by 0.17 percent from the previous session's close of USD85.41 per barrel.
Israeli Army Chief of Staff Herzi Halevi's statement on Monday, indicating a potential response to Iran's recent attack, heightened concerns about escalating tensions in the region. Iran's deputy foreign minister warned of swift retaliation if Israel took military action against Iran.
The ongoing conflict in the Middle East, home to a significant portion of the world's oil reserves, continues to impact oil prices, raising fears of potential disruptions to oil supply.
Additionally, China's economy surpassed expectations by growing 5.3 percent in the first quarter, despite challenges in the real estate market and weakening domestic demand. This positive economic data from China signaled strong oil demand, further supporting the upward trend in oil prices.
Nevertheless, uncertainty surrounding the timing of interest rate adjustments by the US Federal Reserve (Fed) is tempering the upward trajectory of prices.
Analysts anticipate that the Fed will maintain its policy rate unchanged in May, with the likelihood of the central bank initiating a rate hike diminishing to 20 percent in June and 40 percent in July. By September, the probability of the Fed implementing its first rate cut stands at 72 percent.
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