Traders are hoping for stronger stimulus from China to spur growth in the world’s second-largest economy. Meanwhile, markets continue to monitor the situation in the Middle East in preparation for a retaliatory attack by Israel on Iran.
Crude oil futures fell more than 2% on Monday after China’s finance minister’s press conference disappointed markets.
Traders are hoping for stronger stimulus from China to spur growth in the world’s second-largest economy. Weak demand in the world’s biggest oil importer has been weighing on the market for months.
“China’s monetary stimulus has been uninspiring, and the Treasury’s promise of additional borrowing over the weekend, while long on platitudes and phrases, is reassuring,” Tamas Varga, an analyst at oil broker PVM, said in a note to clients. It lacked emotion and persuasive details,” he told customers.
Monday’s energy prices are:
West Texas Intermediate November contract: $73.93 per barrel, down $1.63, or 2.16%. U.S. crude oil prices have risen about 3% since the beginning of the year. Brent December contract: $77.44 per barrel, down $1.60, or 2.02%. Year-to-date, global benchmarks have remained largely unchanged. RBOB gasoline November contract: $2.1044 per gallon, down 2.19%. From the beginning of the year to now, gasoline has changed little. Natural gas November contract: $2.572 per 1,000 cubic feet, down 2.28%. Since the beginning of the year, gasoline has led by more than 2%.
Meanwhile, markets continue to monitor the situation in the Middle East in preparation for a retaliatory attack by Israel on Iran. A U.S. official told NBC News that Israel has narrowed down the targets it plans to attack. These include military and energy infrastructure, officials told NBC.
