Oil supply and demand concerns

Oil prices rose on a rally in Chinese stocks and a weaker dollar as investors weighed on signs of tightening supply amid rising tensions in the Middle East and a still-volatile demand outlook. Brent rose to $83 a barrel after falling 1.5% on Tuesday, while U.S. crude traded above $77. Russia, an OPEC+ producer, met its export cut target in January in line with an earlier pledge to the group, government data showed. Chinese figures showed tourists spending sparingly despite increased travel during the Lunar New Year holidays. Crude has remained in the $10 a barrel range this year as the push and pull of bullish and bearish factors has led to lower volatility. Attacks on ships in the Red Sea and the Israel-Hamas war have heightened tensions in the Middle East and added a geopolitical risk premium to prices. Chinese stocks rose after policymakers took steps to boost investor confidence, but stocks elsewhere in Asia fell. The weaker dollar, which fell for a third session, is making commodities more attractive to overseas buyers. “Prices are staying in a narrow consolidation range, reflecting near-term indecision,” said Yeap Jun Rong, market strategist at IG Asia in Singapore. He added that investors are “wondering what’s next in terms of broader supply-demand dynamics.”