Oil prices are holding near three-week highs, weighed down by tensions in the Middle East and demand from China

(1) Oil prices were little changed at the start of the Asian session on Tuesday, hovering near three-week highs amid heightened tensions in the Middle East and a recovery in Chinese demand. (2) The Market Maker Brent crude oil futures contract fell 0.1% to $832.65 per barrel. U.S. West Texas Intermediate (WTI) CLc1 for April Delivery fell $0.10 to $78.36 a barrel. The WTI March contract rose $0.26 to $79.45 a barrel as traders brace for an intraday expiration of the contract. (3) IG market analyst Tony Sycamore said in the report that the crude oil market “fell slightly” and that “trading was thin during the US President’s Day holiday, and demand concerns offset geopolitical tensions in the Middle East”. (4) ANZ analysts wrote in the report that “signs of stronger demand in China have also boosted market sentiment.” ” (5) During the National Lunar New Year holiday, which ended last Saturday, China’s tourism revenue surged 47.3% year-on-year and surpassed pre-pandemic levels. (6) China’s Central Bank’s February loan market Intrerest Rate (LPR) released on Tuesday showed that the one-year and five-year Intrerest Rates were 3.45% and 3.95%, respectively; the asymmetric rate cut appeared as scheduled, and the five-year rate was lowered again after eight months, reaching 25 basis points, and the one-year LPR was flat for the sixth consecutive month. (7) However, price support factors have not fully offset demand concerns. A report released last week by the International Energy Agency (IEA) lowered its forecast for oil demand growth in 2024 in anticipation that renewables will replace the use of fossil fuels