Crude oil higher; Rising expectations of more Chinese stimulus help
Investing.com — Crude oil prices gained Tuesday, helped by growing expectations of more stimulus in China, the largest importer of crude in the world, as well as bullish OPEC comments regarding future demand.
By 09:20 ET (13:20 GMT), the U.S. crude futures traded 0.9% higher at $73.59 a barrel, while the Brent contract climbed 0.7% to $78.24.
China's new bank loans jumped more than expected in June, data from the People's Bank of China showed on Tuesday, with Beijing attempting to spur demand after three years of COVID curbs.
Additionally, China's central bank on Monday extended until the end of 2024 some policies in a November rescue package to shore up the property sector, and traders are expecting further stimulus measures to boost the world’s second largest economy, which is struggling to recover from the ravages of the COVID pandemic.
This has helped the market build on the gains that followed supply cuts by top exporters Saudi Arabia and Russia for August, announced last week.
Additionally, global demand for all forms of energy is forecast to rise by 23% through 2045, OPEC Secretary General Haitham Al Ghais said earlier Tuesday.
«We will require innovative solutions such as carbon capture utilisation and storage, and hydrogen projects in addition to a circular carbon economy, which has received a positive endorsement from the G20,” he said.
In the U.S., the largest consumer of energy in the world, the power grid operator in Texas forecast electricity use would break records again this week as residents in the state try to cope with a summer heatwave.
However, most attention this week will be on the release of the latest inflation figures in the U.S., as these could influence the thinking of Fed officials ahead of
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