Oil prices have steadied in Asian trade amid uncertainty surrounding the U.S. presidential election and a key political meeting in China.
On Monday, oil prices surged after OPEC+ decided to delay production increases, leading to a tighter market outlook. However, concerns over slowing demand, particularly from China, have kept prices near three-year lows.
Geopolitical tensions in the Middle East, including reports of potential missile strikes, have provided limited support to crude prices.
Brent crude futures for January delivery declined 0.2% to $74.93 a barrel, while WTI crude futures fell 0.2% to $70.90 a barrel.
China NPC Meeting Could Provide Stimulus Clues
The NPC meeting in China is expected to approve additional fiscal spending to support economic growth. Reports suggest that China could approve around $1.4 trillion in increased debt over the next few years.
Stimulus measures in China, the world’s largest crude importer, could help boost oil markets and alleviate concerns about demand slowdowns.
Focus on U.S. Elections and Fed Meeting
Traders are closely watching the U.S. presidential election, with polls showing a tight race between Donald Trump and Kamala Harris. The outcome remains uncertain.
Following the election, attention will turn to the Federal Reserve meeting, where a 25 basis points interest rate cut is anticipated. These events will provide insights into the outlook for the world’s largest fuel consumer.
Overall, developments in China and the U.S. will play a crucial role in shaping oil market dynamics in the coming days, impacting global energy prices and investor sentiment.