Oil prices have risen, yet they remain close to a two-week low.

Oil prices increased on Tuesday, January 28, but remained close to a two-week low due to weak economic data from China and forecasts of warmer weather in other countries, which dampened demand outlooks.

https://www.ukrinform.ua/rubric-economy/3953509-nafta-podorozcala-ale-cini-trimautsa-bila-dvotiznevogo-minimumu.html2025-01-28 08:20:52

According to Ukrinform, this was reported by Reuters.

Brent crude oil futures rose by 42 cents, or 0.54%, reaching $77.50 per barrel. Prices for West Texas Intermediate in the U.S. increased by 34 cents, or 0.46%, to $73.51. On Monday, Brent hit its lowest level since January 9, while WTI reached a minimum since January 2.

China, the world's largest importer of crude oil, announced an unexpected decline in manufacturing activity in January, raising concerns about the growth of global demand for crude oil.

“The overall tone of caution amidst risk factors, combined with weaker PMI readings in China that raise doubts about oil demand prospects in the country, may dampen oil prices,” said IG analyst Yeap Jun Rong.

It is expected that demand for crude oil in China will also be affected by the recent U.S. sanctions on Russian oil trade. Analysts at FGE believe that refineries in Shandong may soon lose up to 1 million barrels per day of crude oil supply due to a ban imposed by Shandong Port Group on tankers that are under U.S. sanctions.

“Alternative barrels of crude oil (from Russian suppliers) are being sought simultaneously, but they come at a much higher cost,” the analysts noted.

Several independent refineries in China have halted operations or plan to do so for an indefinite maintenance period, Reuters sources reported, as new Chinese tariffs and tax policies are leading these plants to losses.

India, the third-largest importer of crude oil in the world, is also facing disruptions in Russian oil supplies, but local refiners are taking advantage of the period of sanction easing to make purchases until March, according to FGE analysts.

In the U.S., weather forecasts for this week indicate above-normal temperatures, negatively impacting heating fuel demand following extreme cold that had previously triggered rallies in natural gas and diesel prices.

“Temperatures in both regions (the U.S. and Europe) are rising, which allows for a slight decrease in heating fuel demand,” said oil analyst Alex Hodes from StoneX on Monday.