Oil prices rose in Asian trading on Tuesday, October 31, after falling more than 3% in the previous session, as concerns about supplies raised by the conflict in the Middle East overshadowed weak Chinese data.

By 03:05 GMT, Brent crude futures for December, which expire today, Tuesday, rose 36 cents, or 0.41%, to $87.81 per barrel. Brent crude futures for January, the most widely traded, rose 29 cents, or 0.34%, to $86.64 a barrel.

US West Texas Intermediate crude rose 34 cents, or 0.41%, to $82.65 per barrel.

Oil prices fell more than 3% yesterday, Monday, as investor caution increased ahead of the US Federal Reserve meeting tomorrow, Wednesday, despite the escalation of Israeli attacks on the Gaza Strip.


ING analysts said in a note that disruption to Iranian oil flows remains the most obvious risk to the market.

They added that such supply shortages could range between 500,000 barrels per day and one million barrels per day if the United States imposes sanctions more severely again.

Data on manufacturing and non-manufacturing activities in China, which were weaker than expected, fueled fears of a slowdown in demand for fuel from the second largest oil consumer in the world.

Its official purchasing managers' index defied expectations and fell again below the 50-point level that separates contraction from growth.

Prices received some support from concerns about the prospects for crude exports from Venezuela, amid uncertainty over the elections.

ING analysts said the Supreme Court's suspension of the results of the opposition's presidential primaries this month would likely raise questions about whether the United States would continue to ease sanctions on Venezuela.

They added that Washington recently decided to ease sanctions in exchange for a promise to hold more fair elections in 2024.

Markets are also awaiting the US Federal Reserve meeting, which affects domestic demand for fuel, despite the high probability of keeping interest rates steady, according to a survey conducted by the CME FeedWatch tool.