SINGAPORE, Oct 1 (Reuters) – Oil prices remained relatively steady on Tuesday as concerns over weak global demand growth offset fears of escalating Middle East tensions affecting supply. Brent crude futures for December delivery increased by 13 cents to $71.83 per barrel, while U.S. West Texas Intermediate (WTI) futures for November rose 14 cents to $68.31.

Brent crude ended September with a 9% drop, marking the third consecutive monthly decline and the largest since November 2022. WTI saw a 7% drop for the month. Analyst Yeap Jun Rong from IG highlighted that upcoming OPEC+ supply additions and a sluggish demand outlook from China were limiting price gains.

China’s manufacturing activity sharply contracted in September, cooling domestic and international demand. Analysts anticipate recent stimulus measures could help stabilize China’s growth at around 5% in 2024 but won’t significantly alter long-term demand.

OPEC+ is scheduled to increase output by 180,000 barrels per day in December. While escalating tensions in the Middle East, including Israel’s anticipated invasion of Lebanon, have raised concerns, supply disruptions seem contained for now.

In the U.S., crude and fuel inventories were expected to decline by 2.1 million barrels in late September, according to a preliminary Reuters poll.