Oil rallied on renewed China’s growth support measures and Middle East tensions

Global crude oil prices surged on Monday, 21 October 2024, with international benchmarks rising over $1 per barrel. The gains came on the back of renewed optimism over China’s latest economic stimulus measures and heightened geopolitical tensions in the Middle East.

Brent gained $1.23, or 1.68% to close at $74.29/barrel.  

WTI added $1.34, or 1.94% to settle at $70.56/barrel.

China's decision to cut its benchmark lending rate and reduce commercial banks' reserve requirement ratio was seen as a signal of its commitment to revive its struggling economy. The People’s Bank of China reduced the one-year loan prime rate (LPR) by 25 basis points, lowering it from 3.35% to 3.10%. Simultaneously, the central bank slashed the reserve requirement ratio for commercial banks by 50 basis points. These moves are part of a broader series of monetary policy interventions aimed at injecting liquidity into the economy and supporting growth.

Written by: Rochelle Nguyen