SINGAPORE, March 3 (Reuters) – Oil prices showed minimal changes on Monday as positive manufacturing data from China, the largest crude importer, brought optimism for fuel demand. However, concerns about a potential Ukraine peace deal and global economic growth due to possible U.S. tariffs remained. Brent crude increased by 19 cents, or 0.3%, reaching $73.00 a barrel by 0720 GMT, while U.S. West Texas Intermediate crude was at $69.95 a barrel, up 19 cents, or 0.3%. The rise followed official data indicating that China’s manufacturing activity expanded at its fastest pace in three months in February, driven by new orders and higher purchase volumes. Investors are anticipating China’s annual parliamentary meeting starting March 5 for additional economic support measures. IG market analyst Tony Sycamore noted that the China NBS manufacturing PMI returning to expansionary levels could be driving the price increase. However, he warned of potential challenges due to upcoming U.S. tariffs on Chinese exports starting March 4. Last month, Brent and WTI recorded their first monthly declines in three months amid fears of tariffs affecting global economic growth and reducing investor confidence in riskier assets. Sentiment improved after a summit where European leaders expressed strong support for Ukrainian President Volodymyr Zelenskiy, promising further assistance just after U.S. President Donald Trump’s disagreement with him led to a shortened Washington visit by Zelenskiy. Zelenskiy expressed hope to mend ties with Trump through continued discussions and readiness to sign a minerals deal with the U.S. RBC Capital analyst Helima Croft suggested the situation could lead to quicker removal of U.S. sanctions on Russia. Concerns also arose over Russian refined products exports due to ongoing refinery attacks, including a fire at a plant in Ufa. For 2025, analysts maintain steady oil price forecasts, expecting Brent to average $74.63 a barrel, balancing potential U.S. sanctions with ample supply and a possible Russia-Ukraine peace deal, according to a Reuters poll. Despite U.S. encouragement, eight international oil firms in Iraq’s Kurdistan region stated they would not resume shipments via Turkey’s Ceyhan port due to unclear commercial agreements and payment guarantees. — news from Reuters
