Oil prices rise on China stimulus amid Mideast ceasefire push

FE Team | Published: October 22, 2024 22:28:15

LONDON, Oct 22 (Reuters): Oil prices rose to $75 a barrel on Tuesday, extending gains from the previous session as investors weighed the impact of China's stimulus measures to boost its economy, while concerns over conflict in the Middle East persisted.
Brent crude futures for December delivery were up 43 cents, or 0.6%, to $74.72 at 1319 GMT. U.S. West Texas Intermediate crude futures for November delivery were up 49 cents, or 0.7%, at $71.05 a barrel on the contract's last day as the front month.
The more actively traded WTI futures for December delivery, which will soon become the front month, were also up 49 cents, or 0.7%, to $70.53 per barrel.
Both Brent and WTI rose nearly 2% on Monday, recouping some of last week's more than 7% decline, with no letup of fighting in the Middle East and the market nervous that Israel's expected retaliation against Iran could disrupt oil supply.
U.S. Secretary of State Antony Blinken arrived in Israel on Tuesday, the first stop on a Middle East tour in which he will seek to revive talks to end the Gaza war and contain the spillover conflict in Lebanon.
"Crude oil prices have been fluctuating in response to mixed news from the Middle East, as the situation alternates between escalation and de-escalation," said Satoru Yoshida, a commodity analyst at Rakuten Securities.
The market continued to weigh the implications for fuel demand of China's stimulus measures and increased U.S. economic activity, he added
Beijing on Monday cut benchmark lending rates as part of stimulus measures to revive the economy as data last week showed it had grown at the slowest pace since early 2023 in the third quarter.
China's oil demand growth is expected to remain weak in 2025 as the world's No. 2 economy electrifies its car fleet and grows at a slower pace, the head of the International Energy Agency said on Monday.
Still, Saudi Aramco is "fairly bullish" on China's oil demand especially in light of the government's stimulus package which aims to boost growth, the head of the state-owned Saudi oil giant said on Monday.