Feb 27 Reuters Oil prices on Tuesday built on gains made a day earlier amid attacks on shipping in the Red Sea that have exacerbated supply worries.

Brent crude futures rose 36 cents, or 0.44, to 82.89 a barrel by 0745 GMT, while U.S. West Texas Intermediate crude futures WTI were up 31 cents, or 0.40, to 77.89 a barrel.

Concerns around shipping disruptions in the Red Sea have supported a rebound in the price of crude oil overnight, offsetting a more hawkish Fed currently weighing on the demand side of the equation, said Tony Sycamore, an analyst at IG in Sydney.

The attacks by Iranaligned Houthis in support of Palestinians have increased freight rates and shipping times. On Monday, U.S. Central Command said that the Houthis had unsuccessfully fired a missile at the U.S. flagged oil tanker Torm Thor in the Gulf of Aden on Feb. 24.

On Tuesday, U.S. President Biden said Israel has agreed to halt military activities in Gaza for the Muslim holy month of Ramadan, as Hamas studied a draft proposal for a truce which includes a pause in fighting and a prisonerhostage exchange.

Oil prices were also supported on Tuesday by indications of improved demand in China.

Concerns over Chinese demand are abating, as refineries continue brisk buying in the physical market after a boom in Lunar New Year travel. This is despite them having planned more maintenance halts than usual, analysts from ANZ Bank said in a note.

Also on Tuesday, Russian authorities announced a sixmonth ban…