Oil prices slipped on Tuesday as concerns eased about the fallout from Syrian President Bashar al-Assad’s overthrow, but the market found support in China’s vow to ramp up policy stimulus, which could boost the top global crude buyer’s demand.
Brent crude futures were down 32 cents, or about 0.4%, at $71.82 per barrel. U.S. West Texas Intermediate crude futures were down 37 cents, 0.5% lower, at $68 at 0458 GMT. Both benchmarks climbed more than 1% on Monday.
“The tensions in the Middle East seem contained, which led market participants to price for potentially low risks of a wider regional spillover leading to significant oil supply disruption,” said IG market strategist Yeap Jun Rong.
Syria’s rebels were working to form a government, restore order after Assad ouster with the country’s banks and oil sector set to resume work on Tuesday.
While Syria itself is not a major oil producer, it is strategically located and has strong ties with Russia and Iran, and regime change could raise regional instability.
The power transfer followed 13 years of civil war and brought an end to over 50 years of brutal rule by the Assad family.
