Brent crude futures declined 31 cents, or 0.4%, to $73.56 a barrel, while U.S. WTI crude futures were at $70 a barrel, down 38 cents, or 0.5%
Oil prices extended declines on Monday as the threat of a supply disruption from a U.S. storm eased and after China’s stimulus plan disappointed investors seeking fuel demand growth in the world’s number two oil consumer.
Brent crude futures declined 31 cents, or 0.4%, to $73.56 a barrel by 0340 GMT, while U.S. West Texas Intermediate (WTI) crude futures were at $70 a barrel, down 38 cents, or 0.5%.
Both benchmarks declined more than 2% last Friday.
Beijing’s stimulus package announced at the National People’s Congress standing committee meeting on Friday fell short of market expectations, IG market analyst Tony Sycamore said in a note, adding that its forward guidance hinted at modest stimulus for housing and consumption.
ANZ analysts said the lack of direct fiscal stimulus implied that Chinese policymakers have left room for assessing the impact of the policies the next U.S. administration will introduce.
The market will now shift focus to the Politburo meeting and Central Economic Work Conference in December, where we expect more pro-consumption countercyclical measures to be announced, they said in a note.
Oil consumption in China, the world’s driver of global demand growth for years, has barely grown in 2024 as its economic growth has slowed, gasoline use has declined with the rapid growth of electric vehicles and liquefied natural gas has replaced diesel as a truck fuel.
Oil prices have also declined after concerns about supply disruption from storm Rafael in the U.S. Gulf of Mexico subsided.
More than a quarter of U.S. Gulf of Mexico oil and 16% of natural gas output remained offline on Sunday, as per the offshore energy regulator.
