Brent gains on China stimulus plans

The front-month ICE Brent contract has risen $0.72/bbl from Tuesday, to trade at $73.88/bbl at 09.00 GMT.

PHOTO: Getty Images

Upward pressure:

Oil prices rose on optimism about additional fiscal stimulus in China, the world's largest oil importer.

China plans to enhance fiscal support for consumption next year by increasing pensions, medical insurance subsidies, and expanding trade-in programs for consumer goods, according to a finance ministry announcement reported by Reuters.

China's trade-in programs for consumer goods refer to a series of measures to boost domestic sales.

Expectations of a decline in US crude inventories also supported Brent futures, analysts said.

Downward pressure:

Libya's National Oil Corporation (NOC) announced on Wednesday that the country's average crude production in 2024 surpassed its target of approximately 1.4 million b/d, Reuters reported. This exerted some downward pressure on Brent futures.

By Tuhin Roy

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