- Oil prices stabilized on Tuesday as markets balanced supply forecasts and slow global demand growth against fears of escalating tensions in the Middle East that could affect production from the key oil-exporting region.

- Brent crude futures for December delivery rose 7 cents, or 0.1%, to $71.77 a barrel. U.S. West Texas Intermediate crude futures for November delivery increased by 8 cents, or 0.12%, to $68.25.

- Brent futures ended September down 9%, marking the third consecutive month of decline and the largest monthly drop since November 2022. It also fell 17% in the third quarter, representing the biggest quarterly loss in a year. West Texas Intermediate futures dropped 7% last month and fell 16% for the quarter.

- There are many reservations regarding oil prices, as market participants look toward upcoming supply increases from OPEC+ by the end of this year, along with a weak demand outlook from China, as reflected in the country’s latest PMI figures.

- A private sector survey on Monday showed that industrial activity in China contracted sharply in September as new orders both domestically and abroad declined, pulling factory owners' confidence down to near-record lows.

- A series of stimulus measures were announced over the past week, which are likely sufficient to bring China’s growth back to around 5% in 2024, following data that fell short of forecasts in recent months that raised doubts about this target; however, it is unlikely to change the long-term outlook.

- In addition to demand concerns, OPEC+, which includes OPEC members and allies such as Russia, is scheduled to increase production by 180,000 barrels per day in December.

- Meanwhile, tensions in the Middle East remain in focus, but supply concerns seem relatively contained for now, as market participants still price out the risks of escalating regional conflict.

- In the U.S., crude oil and fuel inventories are expected to have fallen by about 2.1 million barrels last week for the week ending September 27, according to a preliminary Reuters poll on Monday. The poll was conducted ahead of a report from the American Petroleum Institute.

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