Oil prices rise due to tensions in the Middle East.

Oil prices rose on news of monetary stimulus from China, the situation in the Middle East, and the hurricane in the United States, Reuters reported.

Brent crude oil futures rose 0.93% to $74.59 per barrel. U.S. WTI crude futures rose 1.05% to $71.11.

Both contracts closed lower on Monday due to concerns about demand in the Eurozone and fuel consumption in China.

"WTI oil prices rose after China cut its key lending rates. The oil market has long awaited additional easing measures from Chinese authorities to counter the economic downturn," said IG market analyst Tony Sycamore.

China's central bank announced monetary stimulus to revive the economy.

"The oil market was concerned that rising tensions were bringing the OPEC producer closer to conflict," ANZ bank said in a note, referring to Iran.

Traders are also paying attention to weather conditions. The hurricane threatens the U.S. Gulf Coast at the end of the week.

Source: Economic Truth