Oil prices were little changed in early Asian trading on Tuesday, hovering near three-week highs on rising tensions in the Middle East and a rebound in Chinese demand.
Brent crude futures were down 8 cents at $83.48 a barrel by 0133 GMT. U.S. West Texas Intermediate crude for April delivery was down 10 cents at $78.36 a barrel.
West Texas Intermediate crude for March delivery rose 26 cents to $79.45 a barrel, as traders prepared for the contract to expire during the day.
Crude oil markets were slightly lower in quiet trading over the US Presidents' Day holiday, with demand concerns overshadowing ongoing geopolitical tensions in the Middle East, Tony Sycamore, market analyst at IG, said in a note.
The Houthis have continued their attacks on shipping lanes in the Red Sea and the Bab al-Mandab Strait, with at least four more ships hit by drones and missiles since Friday. One of them, the Belize-flagged, British-registered and Lebanese-operated cargo ship Rubimar, is at risk of sinking in the Gulf of Aden, the Houthis said, raising the stakes in their campaign to disrupt global shipping in solidarity with Palestinians in Gaza.
Signs of strong demand in China also boosted sentiment, ANZ analysts wrote in a note.
China's tourism revenue rose 47.3 percent year-on-year and surpassed pre-COVID-19 levels during the Lunar New Year holiday that ended on Saturday.
China also cut its benchmark mortgage interest rate by more than expected on Tuesday, in an effort to support the property market and the economy.
However, the price support factors have not fully offset demand concerns. The International Energy Agency last week revised down its 2024 oil demand growth forecast amid expectations that renewable energy will displace fossil fuels.
