Friday 22 Nov
Oil prices surged following a dual impact: China's campaign to support economy and the Israeli strike on Hezbollah targets in Lebanon
Brent crude climbed above $74 per barrel, reversing Monday's decline 0.8%. West Texas Intermediate also saw a significant increase, approaching $71.
People's Bank of China Governor Pan Zongsheng announced a series of economic stimulus at a conference Tuesday in Beijing, marking the biggest move by monetary policymakers yet to meet this year's 5% annual growth target.
The agency indicated that global
oil consumption rose by 800,000 barrels per day during the first half of this
year, representing barely a third of the increase during the same period in
2023.
Concerns about China's
faltering economy and the potential for increased supply from OPEC+ have
combined to undermine oil prices, which have fallen by about 14% so far this
quarter. Measures announced on Tuesday—including boosting bank lending to
consumers and businesses and cutting the People's Bank of China's key
short-term interest rate—could support growth and energy demand in the world's
largest oil importer.
Han Chunliang, an investment
strategist at Standard Chartered in Singapore, said: This will be positive for
Chinese demand. Lower interest rates will be beneficial for the real economy.
In the Middle East, Israel attacked targets in southern Lebanon, killing nearly 500 people in the deadliest day of strikes since its 2006 war with Hezbollah. Iran, which supports the group, previously said it was ready to calm tensions.
