(Bloomberg) -- Oil climbed as China’s leaders used their most direct language on stimulus in years, while traders are also keeping an eye on developments in the Middle East.
West Texas Intermediate gained 1.7% to settle above $68 a barrel. Brent topped $72 a barrel. China’s leaders vowed to embrace a “moderately loose” monetary policy in 2025, signaling more rate cuts ahead and shifting from a “prudent” strategy that’s held for 14 years. Easing monetary policy in China lifted oil’s demand outlook, but traders remain measured about potential upside.
“It just takes a lot for the Chinese economy to recover,” said Darwei Kung, head of commodities and portfolio manager at DWS Group. “While the language released so far did indicate potential positive steps,” Kung maintains “a cautious view.”
Focus was also on the toppling of Syrian President Bashar al-Assad’s regime, something that threatens more upheaval and violence as groups tussle for control.
Monday’s gain isn’t enough to take oil out of the roughly $6-a-barrel range it has traded in since mid-October. The market has been buffeted by competing drivers, including Donald Trump’s US election win, geopolitical tensions in the Middle East and lackluster Chinese demand — with a significant global surplus expected next year.
Saudi Arabia cut oil prices for buyers in Asia over the weekend, underscoring the market’s weakening outlook following the OPEC+ decision to delay the revival of halted production.
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