Global oil prices continue to fall amid eased supply concerns

WEB DESK: Global oil prices continued to fall on Monday with the easing of supply concerns from a US storm and disappointment over China’s latest stimulus plan dampening investor hopes for stronger fuel demand.

Brent crude futures dropped by 31 cents or 0.4 per cent to $73.56 per barrel by 0340 GMT while US West Texas Intermediate crude fell by 38 cents or 0.5 per cent to $70 per barrel. Both benchmarks had already seen a decline of more than 2 per cent last Friday.

China’s stimulus package unveiled at the National People’s Congress on Friday fell short of market expectations. IG market analyst Tony Sycamore noted that its vague forward guidance hinted at only modest support for housing and consumption.

ANZ analysts observed that lack of direct fiscal stimulus suggested Chinese policymakers are waiting to see effects of future US economic policies before making big move and they also expect further pro-consumption measures to be announced at the upcoming Politburo meeting and Central Economic Work Conference in December.

China, long a driver of global oil demand, has seen minimal growth in oil consumption in 2024.

This is due to slower economic growth, declining gasoline use as electric vehicle adoption rises and the replacement of diesel with liquefied natural gas for trucks.

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