Crude oil futures slipped on Tuesday morning, despite China’s announcement of plans to introduce policy stimulus measures aimed at boosting its economy.
As of 9:53 AM, February Brent oil futures were priced at $71.88, marking a 0.36% decline, while January West Texas Intermediate (WTI) crude futures traded at $68.06, down by 0.45%.
In India, December crude oil futures on the Multi Commodity Exchange (MCX) opened at ₹5,783, down 0.72% from the previous close of ₹5,825. Similarly, January futures were trading at ₹5,782, a 0.74% drop from the prior settlement.
According to a report, China plans to implement “unconventional” counter-cyclical measures to stimulate domestic demand and consumption. These measures, which include a proactive fiscal policy and looser monetary conditions, are aimed at supporting economic recovery. Xinhua reported that a meeting of top Communist Party officials outlined the need for extraordinary adjustments to the country’s policy toolkit.
The upcoming Central Economic Work Conference in China is expected to set the policy agenda for the coming year, with market analysts hopeful that the stimulus will drive increased demand for commodities, including crude oil.
Meanwhile, political instability in Syria has also caught the attention of global markets. Bashar al-Assad’s ousted Prime Minister has reportedly agreed to transfer power to the rebel-led Salvation Government, following Assad’s flight to Russia after the rebels captured Damascus. Although Syria is not a major oil producer, its strategic location and ties with Russia and Iran could lead to regional instability, which may further affect global oil prices.
On the MCX, December natural gas futures were trading at ₹270.30, down by 0.44% from ₹271.50. Meanwhile, on the National Commodities and Derivatives Exchange (NCDEX), December turmeric futures rose by 0.46%, reaching ₹13,004, while January jeera futures fell by 0.46%, trading at ₹24,020.
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