Oil Prices Slip Amidst Geopolitical Tensions

10 Dec 2024 , 08:40 AM

With China’s promise to increase economic stimulus and growing geopolitical risk following the overthrow of Syrian President Bashar al-Assad, oil prices only marginally decreased on Tuesday, retaining the most of their gains from the previous session.

At $72.01 a barrel, Brent crude futures were down 13 cents, or roughly 0.2%. U.S. West Texas Intermediate oil futures were down 14 cents, or 0.2%, at $68.23. On Monday, both increased more than 1%.

Despite Syria’s strategic location and close ties to Iran and Russia, a government change could increase regional instability even if the country does not produce much oil.

A day after the rebels took control of the capital Damascus and Syrian President Assad fled to Russia, the prime minister of Syria declared Monday that he had decided to give over power to the rebel-led Salvation Government.

The impending handover of power comes after more than 50 years of ruthless Assad family control and 13 years of civil conflict.

Reports that China will implement a “appropriately loose” monetary policy next year—the first softening of its stance in about 14 years—to promote economic growth in the previous session also helped oil prices.

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