China Stimulus, US Stocks Weigh on Oil Prices

25 Sep 2024 , 10:52 AM

Oil prices held steady on Wednesday after climbing the previous day on waning enthusiasm for China’s economic stimulus, the world’s largest oil importer, though an industry data showing dropping U.S. crude and fuel stockpiles boosted the market.

Brent crude prices rose 3 cents to $75.20 per barrel. U.S. West Texas Intermediate crude fell 2 cents to $71.58 a barrel.

The growing conflict in the Middle East between Iran-backed Hezbollah in Lebanon and Israel also boosted crude prices, with both sides launching cross-border missiles, raising worries of a broader war in the crucial oil producing region.

Prices increased by approximately 1.7% on Tuesday after China launched its most extensive economic stimulus since the COVID-19 pandemic, including interest rate cuts and government support.

Nonetheless, falling US crude oil and fuel stockpiles gave some support for the market, which has largely climbed after prices plummeted to their lowest level since 2021 on September 10.

U.S. oil stockpiles declined by 4.34 million barrels last week, while petrol inventories fell by 3.44 million barrels and distillate supplies fell by 1.12 million barrels, according to news reports quoting American Petroleum Institute data on Tuesday.

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