Crude Oil Rises back above $100 after China Announces Economic Stimulus Measures

Crude oil futures rose on Tuesday (April 26) on news that China has announced further stimulus measures. This is to revive the industrial sectors and small businesses affected by the closure measures.

  • WTI crude futures were up $3.16, or 3.2%, at $101.70 a barrel.
  • BRENT crude futures were up $2.67, or 2.6%, at $104.99 a barrel.

Crude oil futures are rallying after the People’s Bank of China issued a statement yesterday that China will step up measures to support the economy. The move is aimed at boosting investor confidence at a time when markets are under heavy pressure from a sluggish economic outlook and the impact of China’s lockdowns on key cities.

According to the People’s Bank of China, China will use loose monetary policy to support real economic growth. Especially the industry and small enterprises are strongly affected by the COVID-19 epidemic.

China will promote the development of strong and stable financial markets and conduct effective monetary policy, as well as create a favorable financial environment for the corporate sector by emphasizing that it will maintain sufficient liquidity to meet demand.

Investors continue to keep an eye on the tensions between Russia and Ukraine . Recently, Russian Foreign Minister Sergei Lavrov warned that the Russian-Ukrainian crisis could escalate into a nuclear war.

Investors are also waiting for the weekly report on U.S. crude oil inventories, which the EIA will publish today. Analysts expect an increase in U.S. crude oil inventories by 2 million barrels.

The Spot Market is Open

Wednesday, April 27, 2022

Energy
Updated at
USD
Price

Change

%Change
Crude Oil
11.30

101.95

+0.25

0.25%

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