WTI crude oil futures rose 1.9% to above $70.5 per barrel on Monday, following last week’s 8.4% drop, driven by Middle East tensions threatening supply disruptions and economic stimulus moves by China, the world’s largest oil importer. Heightened conflict between Israel and Hezbollah, and Israel’s vows of retaliation against Iran, have increased geopolitical risks. Over the weekend, a Hezbollah drone targeted Prime Minister Netanyahu’s residence, prompting Israel to launch a military offensive in Lebanon. Meanwhile, China implemented stimulus measures, including lending rate cuts, to revive growth. Despite these developments, concerns remain over weak demand in China and forecasts of rising global oil supplies, with OPEC+ set to restore output from December.
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