Geopolitical tensions and China’s stimulus plan lead to dip in oil prices

Beijing: Brent crude futures edged down by 13 cents, or 0.2%, settling at $72.01 a barrel, while U.S. West Texas Intermediate (WTI) crude dropped 14 cents, or 0.2%, to $68.23. This comes after crude futures rose by over 1% on Monday.

ANZ Research attributed the slight decline to escalating tensions in the Middle East, which typically elevate risks in oil markets. However, optimism stemming from China’s announcement of its first major monetary easing policy in 14 years provided a counterbalance. The world’s largest oil importer aims to stimulate economic growth with an “appropriately easy” monetary policy starting next year.

Traders are now closely watching China’s trade data for November, set to be released later today, alongside the American Petroleum Institute’s report on U.S. crude and gasoline inventories for last week.