Investing.com– Oil prices steadied Tuesday, consolidating after the previous session’s gains following pledges of more stimulus in top importer China and heightened geopolitical tensions in Syria.
At 09:00 ET (14:00 GMT), traded largely unchanged at $72.11 a barrel, while rose 0.2% to $68.46 a barrel.
Syria tensions keep risk premium in play
Oil prices saw a higher risk premium this week, after rebel forces ousted Syrian President Bashar al-Assad and installed a new regime, ending a 13-year civil war.
But traders were uncertain over what a regime change entailed for Syria and broader Middle Eastern geopolitics.
Syria’s new regime is likely to be backed by groups with ties to the Sunni Islamic sect, putting it at odds with Iran. This could give the U.S. government more headroom to impose stricter sanctions against Iran.
Syria’s oil production was also eroded by over a decade of civil war, but could pick up under a new regime, increasing global oil supplies.
At its peak, the country produced over 600,000 barrels of oil per day.
Crude markets cheer China stimulus
Oil prices had received a boots on Monday when China’s top political body announced a shift towards looser monetary policy and flagged plans for more stimulus measures.
Beijing said it will support stock and property markets while “vigorously” supporting local consumption- its most clear signal yet of more targeted stimulus measures.
The announcement sparked a rally across commodity markets, with oil also benefiting from hopes that an improvement in China’s economy will boost its appetite for raw materials.
China’s Central Economic Work Conference, which is set to begin on Wednesday, is now expected to provide more insight into plans for stimulus.
Additionally, China’s crude imports also grew annually for the first time in seven months, jumping in November from a year earlier.
Central bank meetings, key data due
Beyond China, oil markets are bracing for a string of key economic readings and central bank meetings scheduled for the last few weeks of 2024.
US data is set for release on Wednesday, coming just a week before the last of the year.
There are also policy-seting meetings from he European Central Bank and the Swiss National Bank later this week, while the first estimate of UK gross domestic product growth in October is due on Friday.
(Ambar Warrick contributed to this article.)