Brent holds above $100 as tanker attacks deepen supply fears
XLE•China demand seen as key to the rally
While fears of prolonged and more severe supply disruptions in the Gulf have lifted Brent above $100, analysts say the durability of the rally will hinge on China.
In the physical crude oil market, the dated Brent oil benchmark, against which roughly two-thirds of supply is priced, has been above $100 since September 3, according to LSEG data.
China, the world's largest crude importer, has stepped up purchases in recent weeks after months of subdued demand, boosting physical crude markets, ING analysts said in a note.
If Chinese buying continues to recover, it could amplify the impact of any supply disruptions and drive prices higher, but a pullback in imports could temper the market's gains, ING said.
Oil prices ease but Brent stays above $100
Oil prices dipped on Thursday but Brent crude remained above $100 a barrel as traders braced for deeper supply disruptions after Iran and the United States launched their largest attacks on shipping since their six-month-old conflict began.
