Oil fell nearly 3% on disappointing China stimulus, strong dollar
This decline was driven by China’s recent economic stimulus measures, which failed to boost confidence in the demand outlook, alongside the US dollar reaching a one-year high.
International benchmarks for crude oil fell nearly 3% on Monday, November 11, 2024, marking the largest drop in two weeks. This decline was driven by China’s recent economic stimulus measures, which failed to boost confidence in the demand outlook, alongside the US dollar reaching a one-year high.
Brent fell $2.04 or 2.76% to settle at $71.83/barrel.
WTI dived $2.34 or 3.32% to close at $68.04/barrel.
The latest data shows that China remains under deflationary pressure, with consumer prices rising at their slowest pace in four months in October and producer price deflation worsening. The limited scope of China’s fiscal stimulus disappointed investors, heightening concerns about economic growth in the world's largest oil importer.
Adding to the downward pressure, Bank of America Securities forecasted an increase in oil supply from non-OPEC countries, predicting growth of 1.4 million barrels per day in 2025 and an additional 900,000 barrels per day in 2026. Markets are now focused on upcoming oil demand forecasts from the U.S. Energy Information Administration and the International Energy Agency this week.
Written by: Muhammad Hafiz