Oil inched higher on geopolitical risks, China’s stimulus hope
The market remains on edge as the United States expands its military presence in the Middle East, reaffirming its commitment to continued strikes on Houthi targets in response to ongoing attacks on commercial vessels in the Red Sea.
Crude oil prices posted modest gains on Monday, March 17, 2025, extending their upward movement for a second consecutive session as geopolitical risks intensified and China signalled fresh economic support measures.
Brent gained 49 cents or 0.7% to close at $71.07/barrel.
WTI added 40 cents or 0.6% to settle at $67.58/barrel.
The market remains on edge as the United States expands its military presence in the Middle East, reaffirming its commitment to continued strikes on Houthi targets in response to ongoing attacks on commercial vessels in the Red Sea. At the same time, Beijing has outlined stimulus measures aimed at propping up stock and real estate markets, boosting wages, and addressing demographic concerns.
However, despite the latest uptick, crude prices remain under pressure, having declined more than $10 per barrel from their January highs. The downturn has been fuelled by mounting trade tensions, OPEC+ signalling a potential supply increase, and expectations that a resolution to the war in Ukraine could restore Russian crude exports to the market.