Oil Prices Rise on Middle East Tensions, Potential US Rate Cuts Offset Demand Concerns

Oil prices rose due to concerns that escalating conflict between Israel and Hezbollah could disrupt Middle East oil supplies. Positive economic signals, including anticipated U.S. interest rate cuts, also contributed to the price increase by boosting the outlook for fuel demand. However, concerns linger about weak global demand, particularly in China, and the potential for increased OPEC+ output to exceed demand.