Oi prices rise amid China's strong GDP growth, Middle East tensions

April 16, 2024 (MLN): Global oil prices rose on Tuesday following China's forecast-beating GDP growth in the first quarter, coupled with escalating Middle east tensions after Israel said it would respond to Iran's weekend missile and drone attack.

Brent crude traded near the $90 level, up by 0.4% on the day.

While West Texas Intermediate crude (WTI) was at $85.39 per barrel, up by 0.44% on the day.

The benchmarks rose on the back of solid economic growth in China, the world's biggest oil importer. Official gross domestic product grew 5.3% in the first quarter, year-on-year, government data showed, comfortably beating analysts' expectations, as Reuters reported.

While the growth is seen as a welcome sign for policymakers trying to shore up confidence, a raft of other indicators including property investment, retail sales and industrial output showed demand remained weak in the face of a protracted property crisis.

Oil prices soared last week to the highest levels since October, but fell on Monday after Iran's attacks, which its government called a retaliation for an air strike on its Damascus consulate, caused only modest damage.

"Israel's response will determine whether the escalation ends or continues. The conflict could still be contained to Israel, Iran and its proxies, with possible involvement of the U.S.," analysts at ANZ Research said in a note on Tuesday.

Israel's Prime Minister Benjamin Netanyahu on Monday summoned his war cabinet for the second time in less than 24 hours to weigh how to react to Iran's first-ever direct attack on Israel.

This major battery plant near Los Angeles will be among the largest in the world.

Iran produces more than 3 million barrels per day of crude oil as a major producer within the Organization of the Petroleum Exporting Countries (OPEC).

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