Oil extended gains as commodities and stocks in Asia were swept up in optimism around the potential for China stimulus measures.
(Bloomberg) — Oil extended gains as commodities and stocks in Asia were swept up in optimism around the potential for China stimulus measures.
West Texas Intermediate climbed near $70 a barrel after a choppy session on Monday following a short-lived uprising in Russia over the weekend. Chinese Premier Li Qiang said at a forum Tuesday the government would roll out more practical, effective measures to boost domestic demand, but those promises were largely reiterations of prior statements made by officials.
Oil in New York remains on track for its first back-to-back quarterly loss since 2019, in part due to headwinds from China’s lackluster economic recovery and aggressive monetary tightening from the US Federal Reserve. Resilient Russian crude exports have added to the pressure on prices.
Russian President Vladimir Putin condemned leaders of the Wagner mercenary group as “traitors,” although his comments did little to clarify the mystery of the weekend’s events or the fate of mutiny leader Yevgeny Prigozhin. Any prolonged turmoil would impact global oil markets.
“The aborted mutiny fizzled,” said Vishnu Varathan, the Asia head of economics and strategy in Singapore, referring to the uprising in Russia. “But this has not expunged geopolitical risks, not by a long shot.”
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