Oil Rises Over 1% Due to China’s Monetary Policy Decision and Assad’s Fall
The loosening of China's monetary policy is expected to drive the rally in oil prices, boosting risk sentiment.
Oil Prices Rise More Than 1% on China’s Monetary Policy Shift and Assad’s Fall
Oil prices rose over 1% early Monday morning as China, the world’s largest importer, took its first step towards a more relaxed monetary policy since 2010. The move aims to stimulate economic growth, according to state media reports citing a meeting of the Politburo.
Brent futures rose 94 cents, or 1.32%, to $72.06 per barrel, while U.S. West Texas Intermediate USOIL futures gained $1, or 1.49%, to $68.20.
Geopolitical Tensions
The loosening of China’s monetary policy is expected to drive the rally in oil prices, boosting risk sentiment. China’s growth has stagnated due to a collapse in the real estate market, which has undermined confidence and consumption. This slowdown was one of the reasons why the OPEC+ group of oil producers decided last week to delay plans to increase production until April.
China will adopt a “moderately flexible” monetary policy, according to an official statement from a meeting of senior Communist Party officials, a term last used in 2010 when China aimed to support the recovery from the global financial crisis.
The uncertainty following the fall of Syrian President Bashar al-Assad also supported crude prices. Syrian rebels announced on Sunday the overthrow of Assad, ending a 50-year family dynasty in a lightning offensive that raised fears of a new wave of instability in a region already ravaged by war.
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