Oil Rises Over 1% Due to China’s Monetary Policy Decision and Assad’s Fall
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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