Oil prices steadied on Wednesday as China appeared to have circled back to its previously proposed fiscal stimulus package that was struck down. The Chinese government has scheduled a meeting on Saturday to set its fiscal policy.
China’s finance minister is expected to introduce policy shifts aimed at shoring up economic growth. The minister is also expected to answer questions from reporters following the meeting.
Brent recovered from a 4.6% drop during the previous session, edging toward the $78 per barrel mark, while the US benchmark, West Texas Intermediate, rose above $74 per barrel.
Aside from the latest developments in China, Middle East tensions have also played a factor in driving oil prices, Morgan Stanley analysts have claimed. “Heightened geopolitical risks have supported oil prices and appear likely to continue to do so,” the Morgan Stanley team, including Martijn Rats and Charlotte Firkins, wrote in a note. “However, the underlying balance has continued to weaken.”