Brent hovers near three-week high on supply disruptions concerns

International benchmark Brent rose on Monday on track for the third profit in a row, moving near three-week highs on concerns about supply disruptions due to growing geopolitical tensions in the Middle East.

Prices are also boosted by hopes of improving demand on fuel in China, the world’s largest oil importer, after the end of the New Lunar Year holiday. 

Brent Prices Today

Brent prices rose 0.5% to $83.47 a barrel, with a session-low at $82.58, after closing up 0.6% on Friday, scaling a three-week high at $83.63.  

Brent rallied 1.6% last week, the second weekly profit in a row as Middle East tensions grew. 

Middle East Tensions 

Geopolitical tensions in the Middle East continue to grow, as Israel continues to launch strikes against Hamas militants in Rafah, while western nations, led by the US, are calling for a ceasefire. 

A UK-registered cargo ship reported a new attack from Yemen’s coasts on Sunday, with the crew leaving the ship after an explosion. 

The Iran-backed Houthi group said it won’t stop escalating conditions in the Red Sea until the Israel war with the Gaza strip is over.

Chinese Demand 

Many analysts expect fuel demand to rebound in China as economic activities resume in full following the New Lunar Year holiday. 

Chinese authorities recently took fresh stimulus measures to support struggling growth, which is expected to reflect on fuel demand.