Oil Prices Slip as Concerns Ease Over Syrian President’s Overthrow
In a twist of events, oil prices slipped on Tuesday as concerns eased about the fallout from Syrian President Bashar Assad’s overthrow. However, the market found support in China’s vow to ramp up policy stimulus, potentially boosting the demand of the top global crude buyer.
Brent and WTI Crude Prices Fall Slightly
Brent crude futures fell 26 cents, or about 0.4 percent, to $71.88 per barrel, while US West Texas Intermediate crude futures were down 30 cents, also 0.4 percent lower, at $68.07. Despite the slight dip, both benchmarks had climbed more than 1 percent on Monday.
Market Analysts Assess the Situation
“The tensions in the Middle East seem contained, which led market participants to price for potentially low risks of a wider regional spillover leading to significant oil supply disruption,” said IG market strategist Yeap Jun Rong. Syria’s rebels were working to form a new government and restore order after Assad’s ouster, with the country’s banks and oil sector set to resume work on Tuesday.
Focus on Fed Rate Cut and China’s Economic Policies
The market is also keeping a close eye on the likelihood of a rate cut by the US Federal Reserve next week, which could boost oil demand in the world’s biggest economy. Traders are waiting to see if inflation data this week could derail that outlook. Additionally, China’s plans to adopt an “appropriately loose” monetary policy next year could impact oil demand outlook.
China’s Crude Oil Imports Show Positive Sign
In a positive sign, China’s crude oil imports jumped in November from a year earlier in the first annual growth in seven months. This was attributed to lower prices of Middle East supplies and stockpiling demand boosting buying.