Oil prices surge as US vows continued strikes on Houthis
Oil prices rose on Monday following the United States' commitment to continuing its military strikes against Yemen's Houthis until the Iran-aligned group halts its attacks on shipping.
Additionally, positive Chinese economic data fueled hopes for increased demand, News.Az reports, citing Reuters.
Brent futures rose 72 cents, or 1%, to $71.30 a barrel by 0920 GMT, while U.S. West Texas Intermediate crude futures gained 59 cents, or 0.9%, to $67.77.
Chinese economic data also supported prices. Retail sales growth quickened in January-February in a welcome sign for policymakers' efforts to boost domestic consumption even as joblessness rose and factory output eased.
"Oil prices are benefiting from better-than-expected Chinese economic data, potential more stimulus measures in China and renewed tensions in the Middle East, although so far there are still no supply disruptions," said Giovanni Staunovo of UBS.
The oil market has a "comparatively healthy physical backdrop," said Tamas Varga of broker PVM, citing the premium at which nearby oil contracts are trading to those for later delivery, a structure known as backwardation.
Oil rose slightly last week, although Brent is still down almost 5% so far this year on concern over a global economic slowdown driven by escalating trade tensions between the U.S. and other nations.
The prospect of peace in Ukraine has also weighed on prices. Trump said he plans to speak to Russian President Vladimir Putin on Tuesday and discuss ending the Ukraine war, after positive talks between U.S. and Russian officials in Moscow.
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