Tuesday, October 22, 2024
Year : 2, Issue: 8
Oil prices dropped on Tuesday amid concerns that China’s recent incentive packages may fall short of reviving economic activity, while ongoing conflicts in the Middle East keep prices from falling further.
Brent crude, the international benchmark, fell 0.3% to $73.52 per barrel at 10:07 a.m. local time (0707 GMT), down from the previous session’s close of $73.74. The US benchmark West Texas Intermediate (WTI) also declined by 0.3%, trading at $69.50 per barrel, compared to $69.75 in the prior session.
Earlier this month, China, the world’s largest oil importer, announced a stimulus package aimed at addressing ongoing issues in the real estate sector. However, experts believe the measures failed to meet sector expectations. The government introduced a 25-basis-point reduction in 1- and 5-year loan interest rates, which serve as benchmarks for corporate and real estate loans.
The contraction in China’s real estate and housing markets—both crucial for economic growth—has weighed on oil prices, with analysts predicting lower demand from the country.
Fears of a broader regional war, which could disrupt key oil supply routes, continue to limit further declines in oil prices.
Source: Anadolu Agency
