Oil Prices Start the Week With a Gain on Positive China Data

ByIrina Slav– Mar 03, 2025, 2:30 AM CST

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China’s purchasing managers’ index for February rose to 50.2, from 49.1 in January, sparking optimism about oil demand, especially as the reading topped analyst expectations, which were for a more modest increase, at 49.9. Readings over 50 show expansion, while those below 50 suggest a contraction in activity.

Meanwhile, according to Reuters, last Friday’s clash between President Trump and President Zelensky of the Ukraine made the prospect of a peace deal for the Eastern European country more distant than it had been a week earlier. On the other hand, the publication wrote, the show of solidarity behind Zelensky demonstrated this weekend by European leaders was a positive sign for oil markets.

“It’s unclear where the US now stands, making a peace deal seem more distant than a week ago. This is altering energy-market hopes for an easing of sanctions,” ING analysts wrote in a note earlier today. “The shift in expectations is reflected in early morning price action for oil, with Brent up more than 1% at the time of writing.”

Separately, oil traders are bracing for the potential entry into effect of U.S. tariffs on Canadian and Mexican imports, including oil, the ING analysts also wrote, noting that last year, Canadian oil imports accounted for close to two-thirds of total U.S. oil import volumes.

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