Oil prices decreased on Tuesday over fears that the incentive packages announced in China, the world's second biggest oil consumer, will fall short in fueling economic activity, while ongoing conflicts in the Middle East limit further price falls.
The international oil benchmark of Brent crude decreased 0.3% to $73.52 per barrel at 10.07 am local time (0707 GMT), down from the previous session's close of $73.74.
The US benchmark West Texas Intermediate also fell by 0.3% to $69.50 per barrel, compared to $69.75 at the prior session's close.
Earlier in the month, China, the world's largest oil importer, announced a stimulus package to relieve ongoing problems in the real estate sector, but experts argue that the measures did not meet sector expectations.
In order to alleviate the contraction in the real estate sector and housing market the country announced a 25-basis point reduction for 1- and 5-year loan interest rates, which serve as the benchmark interest for corporate loans and real estate loans.
The contraction in the real estate sector and housing market, both of which negatively impact China's economic growth, put pressure on crude prices by supporting predictions of declining demand in the country.
Analysts have stated that the effectiveness of the government's incentive measures to ensure recovery in the real estate sector will only be determined by the data flow from the sector in the coming period, noting that the challenges in the real estate sector remain one of the main economic agendas in China.
Meanwhile, Israel continues its attacks in northern Gaza despite numerous calls for a ceasefire.
At least 20 Palestinians were killed early Tuesday in two separate Israeli army attacks in northern Gaza. Witnesses said drones are surrounding the Khalifa Bin Zayed School, with officials threatening to kill if they do not evacuate.
Concerns that the war could spread over a wider area and disrupt oil supply routes continue to limit further price falls.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr