Oil prices steadied amid mixed supply-related indicators

Oil prices steadied amid mixed supply-related indicators

Oil prices were little changed on Tuesday as traders sifted through confusing and conflicting data on supply and demand levels as rising tensions in the Middle East region and cold weather-related issues hamper production. America.

By 03.53 GMT, Brent crude was down two cents at $80.04 a barrel, while US West Texas Intermediate crude futures fell to $74.75 a barrel in recent trade.

Two crude oil prices rose around 2% on Monday after a Ukrainian drone attack on Novatek's Ust Luzha fuel export facility.

Analysts expect Novatek to resume operations there mostly within weeks.

Analysts at ANZ Research said in a report that while loading vessels at the terminal were damaged, it “briefly affected exports”, but the move raises the prospect of the Russian-Ukrainian war moving into a new phase, with both sides targeting infrastructure. Major energy infrastructure.

In the Middle East, US and British forces launched a new round of strikes targeting an underground Houthi storage base and missile and surveillance capabilities used by the Iran-aligned Houthi group.

Houthi attacks on shipping in and around the Red Sea have disrupted global shipping and raised fears of inflation.

Houthi attacks in the Red Sea on ships bound for Israeli ports come in solidarity with Palestinians suffering the brutal Israeli war on the Gaza Strip.

Because of these ongoing struggles, some analysts are almost optimistic about market fundamentals.

“With no worries about a recession, the impact of severe weather on US oil production and the escalation of geopolitical conflicts continue to support oil prices,” said Leon Li, analyst at CMC Markets in Shanghai.

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The state's North Dakota Pipeline Administration reported on Monday that 20% of oil production has been shut down due to extreme cold and operational problems.

But weighing on markets were worries about the slowdown in China's economic recovery, raising concerns about global demand for oil as the Asian giant is the world's biggest crude importer.

Chinese policymakers have introduced a number of measures to support the economy, but domestic consumption remains sluggish, leaving oil traders nervous about the prospects for demand.

(Reuters)

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