Beijing Lifts Property Market, Oil Surges on Stimulus Hopes

1 Feb 2024 , 10:22 AM

Early trading on Thursday saw a rise in oil prices throughout the world, helped by clues from the US Federal Reserve about potential rate reduction as well as fresh steps China outlined to shore up its troubled real estate sector.

After dropping more than $2 per barrel in the previous session, U.S. West Texas Intermediate crude futures gained 47 cents, or 0.6%, to $76.33, while Brent crude futures increased 46 cents, or 0.6%, to $81.03 a barrel.

According to Federal Reserve Chair Jerome Powell, interest rates have peaked and will likely decline in the months ahead as long as inflation is low and there is steady economic and employment development.

Data revealed that U.S. labour costs increased less than anticipated in the fourth quarter and that the annual increase was the lowest in two years, supporting theories that the central bank could begin lowering interest rates by June.

The demand for oil is supported by lower rates and economic expansion.

China, the second-largest economy in the world, announced new property support policies as the nation finished 2017 with the sharpest drops in new home prices in almost nine years and amid worries about the aftermath of developer Evergrande’s bankruptcy.

Concerns over potential attacks on shipping in the Red Sea by Houthi troops stationed in Yemen are increasing expenses and causing disruptions to international oil trade in the Middle East.

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