Oil Prices Steady on China Stimulus Hopes
Oil prices were mostly unchanged on Thursday as traders digested a mix of factors, including more U.S. oil sanctions, new stimulus measures in China and a gloomy outlook for oil demand from OPEC.
Prices were steady after rising sharply in the previous session on expectations of tighter global supplies, after the U.S. appeared to be preparing more oil sanctions against Russia. Prices also held on to gains made after top importer China signaled more economic support was coming earlier this week.
At 9:04 a.m. ET (0204 GMT), Brent crude futures were down slightly at $73.50 a barrel, and WTI crude futures were down 0.1% at $69.79 a barrel.
Both contracts, which expire in February, had jumped more than 2% on Wednesday.
This comes despite the Organization of the Petroleum Exporting Countries, known as OPEC, cutting its forecast for oil demand growth in 2024 and 2025 on Wednesday, its fifth straight downward revision.
Meanwhile, U.S. Treasury Secretary Janet Yellen said on Wednesday that weaker global oil markets could provide an opportunity for additional action against Russia’s energy sector, as the U.S. continues to seek to thwart Moscow’s ability to wage war on Ukraine.
China stimulus, Middle East tensions keep oil prices high
Oil prices were supported by hopes of fresh stimulus measures from the world’s largest oil importer, after China’s annual economic policy meeting, the Central Economic Work Conference (CEWC), kicked off on Wednesday.
The Chinese government has pledged to ease monetary policy and introduce more targeted stimulus measures to boost economic growth, the country’s Politburo hinted earlier this week.
Oil prices also maintained a higher risk premium amid rising tensions in the Middle East, after Syrian rebel forces overthrew the government earlier this week and took control of Damascus.
Syrian rebel leader Ahmad al-Sharaa - better known as Abu Mohammed al-Golani - will disband the security forces of the ousted Bashar al-Assad regime, he told Reuters in a written statement on Wednesday.
Source: Investing.com
