Oil prices continued to climb for the second straight session on Tuesday, driven by doubts over the potential for a Middle East ceasefire and optimism about increasing demand from China. Brent crude futures for December delivery increased by $1.75 (2.4%) to settle at $76.04 per barrel, while U.S. West Texas Intermediate (WTI) crude futures for November delivery rose by $1.53 (2.2%) to settle at $72.09 a barrel before expiring.
China’s recent economic stimulus measures, including cuts to benchmark lending rates, have lifted analysts’ expectations for oil demand. Despite the shift toward electric vehicles, signs of improving industrial production and retail sales in China have helped revive demand forecasts. Analysts also noted that global petroleum stocks show signs of tightening. U.S. crude stockpiles increased by 1.64 million barrels last week, while gasoline and distillate fuel inventories fell by a combined 3.5 million barrels. Tensions in the Middle East remain a key factor, with ongoing conflicts between Israel and Hezbollah in Lebanon, and no signs of a ceasefire in the Gaza Strip. This geopolitical uncertainty continues to influence market sentiment, though many traders remain cautious about the prospects of a peaceful resolution.