Oil is recovered globally … a greater price and optimism towards China’s request

Oil prices have increased with renewed optimism about fuel demand thanks to positive data on the manufacturing sector in China, the largest importer of crude in the world, despite the uncertainty about the peace agreement in Ukraine and global economic growth due to the potential American customs duties, according to Yahoo Finance.

The high oil prices globally

Brent crude rose 36 cents, equivalent to 0.5 % to $ 73.17 a barrel, while US West Texas Intermediate crude reached $ 70.10 a barrel, an increase of 34 cents or 0.5 %.
Prices rose after official data were released on Saturday, showing that manufacturing activity in China expanded at the fastest pace in three months in February, as new requests and the size of the higher purchases led to a strong increase in production.
Also read: Oil prices are holding on the rise of geopolitical and commercial concerns

China’s request for oil

Investors are awaiting the annual meeting of the Chinese parliament, which begins on the fifth of March to take more measures to support its exhausted economy, and this may result in an increase in the demand for oil.
About this, “IG” market analyst Tony Sikammour said: “One of the potential engines for high prices is that” the industrial purchasing managers index issued by the National Bureau of Statistics in China has returned to the expansion zone during the past days. “
However, Sikammour warned that the economic expectations of China may not be strong in the vicious degree as another round of customs duties on exports to the United States on the fourth of March.

Analysts optimistic about China

Analysts at Goldman Sachs expressed more optimism about the data, saying in an analytical note: “It refers to a stable or slightly better economic activity in China in early 2025, although the imposition of additional American customs duties by 10% may lead to retaliatory measures.”
Last month, February, Brent crude and West Texas Intermediate crude recorded their first monthly decrease in three months, as the threat of customs duties from the United States and its commercial partners has destroyed investor confidence in global economic growth this year and reducing their appetite for the internationally assets of important goods.

Awaited by Ukraine and America talks

On the other hand, the oil market is monitoring the talks of Ukraine and America, and the general feelings improved after the Sunday summit, as European leaders showed strong support for Ukrainian President Volodimir Zellinski, and they promised to make more efforts to help his country just two days after his clash with US President Donald Trump, and Zelinski cut his visit to Washington.
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Zelinski said on Sunday he believed he was able to save his relationship with Trump, but the conversations should continue behind the closed doors.
He added that he is still ready to sign a metal deal with the United States and that he believes the United States will be ready as well.

Oil market and reduce sanctions

“It is not clear where the United States stands now, which makes reaching a peace agreement look more diminished than it was a week ago and this changes the hopes of the energy market in mitigating sanctions,” said analysts at iNG.
Moreover, the ongoing attacks on Russian refineries have sparked concerns about their exports of refined products with news about the burning of a fire in another factory in the Russian city of Ufa.

Oil prices expectations in 2025

A poll of analysts showed that they kept their expectations for oil prices to a large extent in 2025 with a average price for Brent crude at $ 74.63 a barrel, where they expect any effect of additional US sanctions be balanced with abundant supplies and a possible peace agreement between Russia and Ukraine.