Oil Prices Remain Low Due to Weak Chinese Data and Warm Weather Forecasts

Oil prices hovered near a two-week low on Tuesday, pressured by weak economic data from China and warmer weather forecasts in other regions.

Commodity Prices

* Brent crude oil futures gained 0.2% to $77.20 per barrel.
* U.S. West Texas Intermediate crude futures increased 0.1% to $73.27.

Factors Affecting Demand

* China, the world's largest crude oil importer, reported an unexpected decline in manufacturing activity in January, raising concerns about global demand growth.
* U.S. sanctions on Russian oil trade are anticipated to affect China's crude imports.
* Warmer-than-normal temperatures in the U.S. are reducing demand for heating fuels.

Impact on Refineries

* Several independent refineries in China have paused operations or scheduled maintenance due to losses from new tax policies.
* Refineries in Shandong, China, may lose up to 1 million barrels per day of Russian crude supply due to a ban on U.S.-sanctioned tankers.

Alternative Crude Sources

* India, the world's third-largest crude importer, is also facing disruptions to Russian oil supply, but refiners are taking advantage of a grace period in sanctions to secure purchases until March.
* Alternative sources of crude oil are being sought after, but come with higher costs.

Financial Markets

* Global financial markets are experiencing pressure due to the launch of a low-cost AI model by DeepSeek, a Chinese firm.
* AI and data center-related companies in Australia witnessed a decline in share value on Tuesday.