Oil market hit three-week highs following China’s economic stimulus
Global oil prices surged nearly 2% on Tuesday, 24 September, reaching a three-week high after China unveiled a major monetary stimulus. As the world’s largest crude importer, China’s actions fueled optimism in global markets.
Global oil prices surged nearly 2% on Tuesday, 24 September, reaching a three-week high after China unveiled a major monetary stimulus. As the world’s largest crude importer, China’s actions fueled optimism in global markets. However, industry analysts have raised concerns that this initial boost may be short-lived without additional fiscal measures to sustain economic growth.
Brent increased by $1.27, closing at $75.17/barrel.
WTI settled up $1.19, at $71.56/barrel.
The rally was further supported by mounting geopolitical tensions in the Middle East and expectations of another drop in US commercial crude inventories. If confirmed by the US Energy Information Administration (EIA) in its upcoming report, this would mark the fifth decline in U.S. crude stocks over six weeks.
Written by: Muhammad Hafiz
Edited by: Rochelle Nguyen