Oil Prices Cool in Asian Trade After China Stimulus Boost - Investing.com
Oil prices dipped slightly in Asian trade on Wednesday as optimism over more stimulus measures in China eased. Despite U.S. inventories shrinking more than expected, market support was limited. However, oil prices have seen two weeks of strong gains, rebounding from recent lows. Factors such as supply disruptions in the U.S. and tensions in the Middle East have boosted prices.
Brent crude expiring in November fell 0.1% to $75.12 a barrel, while WTI fell 0.1% to $71.46 a barrel by 21:39 ET (01:39 GMT).
China Stimulus Boosts Oil, Analysts Call for More Action
The People’s Bank of China announced stimulus measures, including increased liquidity and looser property market restrictions, leading to a 1.7% rally in oil. Analysts suggest that more action is needed from Beijing to support sluggish growth, despite past monetary efforts falling short.
U.S. Inventories Shrink More Than Expected
API data revealed a 4.339 million barrel decrease in U.S. oil inventories, surpassing expectations, with EIA data expected to confirm. Supply disruptions in the Gulf of Mexico and Hurricane Helene's impact are keeping inventories tight.
Analysis:
Oil prices experienced a slight decline in Asian trade following China's stimulus measures, despite U.S. inventories shrinking more than expected. The market remains cautious, with oil prices showing resilience after recent lows. China's stimulus efforts led to a rally in oil, but analysts believe more action is necessary for sustained economic growth. Additionally, disruptions in the U.S. supply chain and the impact of Hurricane Helene are contributing to tight inventories. Investors should monitor these factors closely as they can impact oil prices and global economic stability.