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 No. 2 oil consumer.
Brent crude futures dropped 31 cents, or 0.4%, to $73.56 a barrel by 0340 GMT while U.S. West Texas Intermediate crude futures were at $70 a barrel, down 38 cents, or 0.5%.
Both benchmarks fell more than 2% last Friday.pared losses to settle down 61 cents for Brent and 30 cents for WTI by the end of the Wednesday session.
Historically, Trump’s policies have been pro-business, which likely supports overall economic growth and increases demand for fuel. Beijing’s stimulus package announced at the National People’s Congress (NPC) standing committee meeting on Friday fell short of market expectations, IG market analyst Tony Sycamore said in a note, adding that its murky forward guidance hinted at only 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.
