Crude: Oil prices surge as China’s monetary policy changes, demand may rise
New Delhi: Oil prices rose on Wednesday, with market players expecting demand to rise in China, the world’s biggest crude importer, after Beijing announced that it would relax monetary policy to stimulate economic growth.
The OPEC+1’s recent meeting led to a 1 percent price hike amid oil dynamics in a fast-changing geopolitical scenario because of the ongoing wars in the Middle East and Ukraine.
On Tuesday, Brent crude futures gained 24 cents, or 0.3 percent, to USD 72.43 a barrel by 0730 GMT, while US West Texas Intermediate crude futures rose 24 cents, or 0.4 percent, to USD 68.83, the media reported.
China said on Monday it would adopt an “appropriately loose” monetary policy in 2025 as part of its efforts to spur its economy. This is the first easing of its stance in 14 years.
Chinese crude imports grew annually for the first time in seven months in November, up more than 14 percent from a year earlier.
China’s policy changes, however, may not be able to counter any impact from the trade measures proposed by President-elect Donald Trump.
The crude and fuel stocks rose last week in the US, according to an American Petroleum Institute report on Tuesday.
Official data on oil stocks from the US Energy Information Administration is du on Wednesday at 10:30 a.m. ET (1530 GMT).
