Oil prices fell on Wednesday as investors assessed whether China’s stimulus plans could further boost fuel demand and economic inputs in the world’s largest crude importer.
Brent crude futures fell 17 cents, or 0.2%, to $75 a barrel by 0415 GMT. WTI crude oil fell 24 cents, or 0.3%, to $71.32 a barrel.
Prices rose about 1.7% on Tuesday after China announced its most aggressive economic stimulus since the COVID-19 pandemic, with interest rate cuts and government funding.
Analysts warned that more fiscal aid is needed to boost confidence in the world’s second-largest economy, cushioning the initial blow to oil prices.
The lack of a more concrete fiscal approach still raises some concerns about whether the economic recovery is sustainable.
There is a general lack of demand in the oil market, with data showing weaker than usual, likely due to falling consumer confidence. The US fell to a three-year low in September, mainly due to concerns about job availability.
Still, lower US crude and fuel inventories have provided some support to the market, which has been rising since prices fell to their lowest level since 2021 on September 10.
US oil inventories fell by 4.34 million barrels last week. In comparison, gasoline inventories fell by 3.44 million barrels and distillate inventories fell by 1.12 million barrels, according to figures from the American Petroleum Institute (API) on Tuesday.
The intensifying conflict between Hezbollah and Israel in the Middle East has also supported crude prices, with both sides firing rockets across the border, raising fears of an expanding war in the key producing region.
Hezbollah confirmed Wednesday that senior commander Ibrahim Kubaisi was killed in Israeli airstrikes on the Lebanese capital, as Israel had previously announced. Israel said Kubaisi headed the group’s missile and rocket force.
The hurricane that threatened the US Gulf Coast has veered toward Florida and away from oil and gas-producing areas near Texas, Louisiana, and Mississippi.
