U.S. crude oil prices rose more than 2% on Tuesday, extending gains to above $72 per barrel. The rally came after last week’s steep decline, with traders less concerned about potential supply disruptions from Middle East tensions between Israel and Iran. Some support for the futures market came from Beijing’s decision to cut its benchmark lending rate on Monday.
Demand concerns from China have added volatility to prices recently, but the market rebounded early this week. The November contract for U.S. crude oil closed at $72.09 per barrel, up $1.53, or 2.17%. Year to date, U.S. crude oil has risen nearly 1%.
The December contract for global benchmark Brent crude settled at $76.04 per barrel, up $1.75, or 2.36%.
Oil prices rise amid market shifts
Year to date, Brent has declined more than 1%.
Gasoline prices also gained on Tuesday, with the November contract closing at $2.0675 per gallon, up 2.62%. Year to date, gasoline has pulled back more than 1%. Natural gas prices, however, dipped slightly, with the November contract settling at $2.304 per thousand cubic feet, down 0.35%.
Year to date, gas has fallen about 8%. Overall, the market sentiment appears to be stabilizing as traders weigh supply risks against demand forecasts, particularly from the Chinese market. The recent price movements reflect the complex interplay of geopolitical events, economic data, and shifting expectations about global oil supply and demand.
