Oil prices stabilized after their biggest rise in more than a week, as traders eyed developments in the Middle East and the impact of Chinese stimulus measures on demand.
Brent crude oil was trading above $75 a barrel after rising 1.7% yesterday, Tuesday, with WTI near $72. Iranian President Masoud Pezeshkian said that Israel’s attacks in Lebanon “cannot go unanswered,” while also urging Western countries to return to the nuclear deal and lift sanctions on his country.
China’s massive “adrenaline shot” to support its economy, the stimulus package unveiled yesterday, has boosted stock markets around the world, although it remains unclear whether it will last -translating into higher energy demand for the largest oil imports.
Crude oil is still slightly lower this year, with the gloomy outlook for Asia’s largest economy and the possibility of more supply from OPEC + putting pressure on prices. Yesterday, the group of producers confirmed the view that global demand for oil will continue to grow until the middle of the century.
In the United States, the American Petroleum Institute reported that commercial crude oil inventories fell by 4.34 million barrels last week, according to people familiar with the data. That would leave inventories at their lowest level since April 2022 if confirmed by official data later on Wednesday.
At the same time, Tropical Storm Helen strengthened as it moved towards the Gulf of Mexico, removing some oil and natural gas platforms.
2024-09-25 05:31:26
#Oil #prices #stabilize #Middle #East #conflict #Chinese #stimulus
