Oil prices remained relatively stable in early Tuesday trading, following a recent decline triggered by China’s stimulus plan and concerns about oversupply. Brent crude futures were down by 1 cent at $71.82 per barrel, while U.S. West Texas Intermediate crude edged up by 3 cents to $68.07 per barrel.
Both contracts had dropped over 5% in the past two trading sessions, following China’s announcement of a 10 trillion yuan ($1.40 trillion) debt package aimed at easing local government financial strains. However, analysts noted that the package fell short of the level of stimulus needed to significantly boost economic growth.
Market participants are awaiting further direction from OPEC’s monthly report, scheduled for release later today, with attention focused on potential downward revisions in the group’s demand forecast through 2025, which could exert additional downward pressure on prices.
The U.S. dollar’s strength, spurred by expectations for upcoming inflation data and Federal Reserve commentary, also contributed to oil’s weaker outlook. A stronger dollar makes oil more expensive for holders of other currencies, typically weighing on prices.
