Oil prices remained steady in early Asian trade on Tuesday, following a rally in the previous session, as the market remained focused on supply concerns, strengthening demand, and developments in the banking crisis.
On Monday, Turkey stopped pumping crude from Kurdistan via a pipeline after an arbitration decision confirmed that Baghdad’s consent was required to ship the oil.
Additionally, the announcement of First Citizens BancShares Inc’s acquisition of deposits and loans from failed Silicon Valley Bank led to optimism about the condition of the banking sector, which has been affecting financial markets.
Oil prices also received support from strong Chinese demand, with China’s crude oil imports predicted to rise by 6.2% in 2023 compared to last year, according to a forecast by a research unit of China National Petroleum Corp.
However, a preliminary Reuters poll showed that US crude oil stockpiles are expected to have increased by about 200,000 barrels last week.