Oil prices climbed on Monday as heightened geopolitical tensions in the Middle East and encouraging economic signals from China supported market sentiment.
Brent crude oil, against which Nigerian oil is priced, rose 28 cents to $70.85 per barrel while West Texas Intermediate (WTI) gained 22 cents to $67.39.
The increase comes as the United States expands military action against Yemen’s Houthis and vows to sustain strikes until the group halts its attacks on commercial shipping in the Red Sea corridor.
U.S. forces hit Hodeidah and Al Jawf, key locations in Yemen as part of a broader offensive aimed at securing vital maritime trade routes. Washington has indicated that operations could last for weeks.
China’s January-February refinery throughput climbed 2.1% year-on-year, bolstered by increased travel and the start-up of a new refinery.
While factory output showed signs of slowing and unemployment ticked higher, policymakers remain focused on stimulating domestic consumption, a trend that could reinforce crude oil demand in the months ahead.
Market analysts point to these dual forces—geopolitical instability and China’s economic momentum—as key drivers of Monday’s price movement.
While concerns over a slowing global economy and OPEC+’s plan to raise output from April continue to exert pressure, some traders see the prospect of tighter U.S. sanctions on Iran and prolonged Red Sea risks as upside factors for crude prices.
The broader oil market has been under pressure in recent months, with Brent still down nearly 5% year-to-date amid trade tensions and economic uncertainty.
However, the latest developments suggest that geopolitical volatility and China’s demand outlook could provide near-term support and keep investors on alert for further shifts in market conditions.
