Oil prices remained stable on Friday, supported by China’s newly announced stimulus measures and positive economic growth prospects in developed nations.
In morning trading, the price of North Sea Brent crude for November delivery increased by 0.01% to $71.67 per barrel. Meanwhile, its American counterpart, West Texas Intermediate (WTI), also scheduled for November delivery, remained steady at $67.67.
Chinese authorities have introduced policies aimed at bolstering and developing the economy, which has reassured markets. As the world’s largest oil importer, China reduced the reserve requirement ratio for banks on Friday, a move anticipated to inject approximately €127 billion in liquidity into financial markets, according to state media.
Additionally, Beijing made further announcements earlier in the week, including a reduction in interest rates and more affordable mortgage loans.
A resurgence in Chinese demand could significantly influence rising oil prices, particularly as the Organisation for Economic Co-operation and Development (OECD) has upgraded its global growth forecast for 2024, citing easing inflation and central banks lowering interest rates.
In its latest economic outlook report released last Wednesday, the OECD projected global growth at 3.2%, an increase of 0.1 percentage points from its previous forecast in May, while maintaining its estimate for 2025 at the same rate of 3.2%.
