A barrel of West Texas Intermediate crude oil for April deliveries is down 0.23% on the NYMEX in New York. to $77.76.
Brent on ICE for April increases by 0.21%. and costs USD 82.71 per barrel.
“Concerns over shipping disruptions in the Red Sea have contributed to a strong rebound in oil prices, offsetting a more hawkish Fed stance that is currently weighing on the demand side,” said Tony Sycamore, an analyst at IG in Sydney.
Oil prices also supported signs of improving demand in China on Tuesday.
“Concerns about Chinese demand are receding as refiners continue to buy vigorously in the physical market following a surge in Lunar New Year travel. This is despite more than usual scheduled maintenance downtime,” ANZ Bank analysts wrote in the report.
US President Joe Biden said on Monday that he hoped a ceasefire in the Israeli-Palestinian conflict in the Gaza Strip would begin next Monday. Biden announced that if an agreement is reached to release the Hamas hostages, Israel will halt its ongoing attacks on the Gaza Strip, which have been ongoing for more than four months, during the Muslim holy month of Ramadan.
Federal Reserve Bank of Kansas President Jeffrey Schmid signaled on Monday in his debut monetary policy speech that, like most of his central bank colleagues, he is in no rush to cut interest rates.
