09:09 AM EDT, 09/24/2024 (MT Newswires) -- Oil prices rose early on Tuesday as China announced a package of stimulus measures to support a flagging economy, while supply tightened as Gulf of Mexico producers began evacuating platforms ahead of a storm forming in the region.

West Texas Intermediate crude for November delivery was last seen up US$1.6o to US$71.97 per barrel, while November Brent crude, the global benchmark, was up US$1.54 to US$75.44.

Weak demand from China, the No.1 importer, was among the factors that sent oil prices to three-year lows earlier this month, as its economy sags under the weight of a debt crisis in its real-estate sector and slowing consumer demand. The BBC reported that the county's central bank, the People's Bank of China, on Tuesday took its first substantial measures to boost demand, including lowering cash reserve requirements for banks to spur lending, cutting interest rates on existing mortgages and lowering minimum down payments for home buyers to 15%.

"The People's Bank of China unveiled a broad package of monetary stimulus measures to revive the world's second-largest economy and top consumer of raw materials. The move underscores mounting worries within the government over slowing growth and very muted consumer confidence. The announcement has so far today triggered a strong response across growth-dependent commodities, from copper and iron ore to crude oil," Ole Hansen, head of commodity strategy at Saxo Bank, noted.

China's move comes as supply is being cut again as the second storm in two weeks forms in the Gulf of Mexico. Shell (SHEL) and others have begun evacuating gulf production platform as what the National Hurricane Center now calls "Potential Tropical Storm Nine" is strengthening off the coast of central America. The center expects the storm to intensify into a major hurricane and is on a path to make landfall in northern Florida on Thursday.

Rising violence in the Middle East is also supporting prices, as Israel carries out strikes in Lebanon against the Iran-backed Hezbollah militia. After airstrikes on Monday that killed 558 and injured hundreds more, The Guardian reported that Israeli Defense Forces on Tuesday are carrying out strikes on Beirut as Hezbollah fires missiles into northern Israel.

The attacks are raising worries Iran will be drawn into the conflict in support of Hezbollah. However Masoud Pezeshkian, the country's president, on Monday said he is not seeking war with Israel and has no interest in further destabilizing the region.