Oil little changed as uncertainty over Ukraine, global growth looms

Oil edged up on Monday as upbeat manufacturing data from China, the world's biggest crude importer, led to renewed optimism for fuel demand, although uncertainty about a Ukraine peace deal and global economic growth from potential US tariffs loomed.

Brent crude climbed 19 cents, or 0.3 per cent, to $73.00 a barrel by 0720 GMT while US West Texas Intermediate crude was at $69.95 a barrel, up 19 cents, or 0.3 per cent.

Prices rose after official data on Saturday that showed that China's manufacturing activity expanded at the fastest pace in three months in February as new orders and higher purchase volumes led to a solid rise in production. Investors are eyeing China's annual parliamentary meeting, which starts March 5, for further measures to support its battered economy.

IG market analyst Tony Sycamore said one of the possible drivers for rising prices was that "the China NBS manufacturing PMI moved back into expansionary territory over the weekend".

However, he cautioned that the country's economic outlook may not be inspiring, with another round of tariffs on exports to the US set to start on March 4.

Last month, Brent and WTI posted their first monthly declines in three months as the threat of tariffs from the US and its trade partners shook investors' confidence in global economic growth this year and reduced their appetite for riskier assets.

Overall sentiment improved after a summit on Sunday where European leaders offered a strong show of support for Ukrainian President Volodymyr Zelenskiy and promised to do more to help his nation, just two days after US President Donald Trump clashed with him, and Zelenskiy cut short a visit to Washington.

Zelenskiy said on Sunday that he believed he could salvage his relationship with Trump but that talks needed to continue behind closed doors. He added that he remained ready to sign a minerals deal with the United States, and he believed the US would be ready as well.

The dramatic showdown has raised the prospect of an irrevocable rupture between the two leaders, and a potential separate peace between Washington and Moscow, RBC Capital analyst Helima Croft said in a note.

"Such a scenario could indeed lead to a swifter removal of US sanctions on Russia, especially those implemented entirely through executive order," Croft said.

In addition, ongoing attacks at Russian refineries have raised concerns about its refined products exports, with another plant in the Russian city of Ufa reportedly on fire.