China’s determination to implement stronger economic growth measures next year and political changes in Syria, which have increased instability in the Middle East, have impacted oil prices.
The price of West Texas Intermediate (WTI) crude oil for January delivery rose by $1.17 (1.74%) to $68.37 per barrel on the New York Mercantile Exchange on Monday. The February Brent crude also rose by $1.02 at $72.14. Both types of crude recorded gains for the first time in four days.
Oil prices showed an upward trend from the beginning of trading, with WTI climbing as much as 2.5% at one point. The main factor behind this rise was China’s economic stimulus policy. During a meeting of the Central Politburo led by President Xi Jinping, officials emphasized the need for “more proactive fiscal policies” and “moderately accommodative monetary policies.” The shift in the monetary policy stance from “prudent” to “moderately accommodative” prompted a positive market response, marking the first change in policy direction since 2008.
An analyst at Price Futures Group, Phil Flynn, suggested that the raw materials market could regain its vitality if China takes all necessary measures for economic stimulus.
Analysts have noted that the potential collapse of the Assad regime in Syria could weaken Russia and Iran’s influence in the Middle East, adding upward pressure on oil prices due to political instability. A senior economist at Mitsubishi UFJ Research and Consulting, Tomomichi Akuta, stated that the situation in Syria has heightened political uncertainty in the region, affecting the market.
These combined factors have increased New York oil prices, capturing the market’s attention.
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