Oil Futures Stability Amid China's Plans

Oil Futures Signal Stability Amid China's Economic Plans

Price Moves

• West Texas Intermediate crude (CL00) for April delivery was down 2 cents at $78.72 a barrel.
• May Brent crude (BRN00, BRNK24), the global benchmark, remained unchanged at $82.89 a barrel.

Market Drivers

China’s leadership outlined a growth target of around 5% for 2024 in an annual report, signaling their efforts to navigate through a real estate crisis. Premier Li Qiang announced plans to issue 1 trillion yuan ($139 billion) in “ultralong special treasury bonds” in 2024, and for the upcoming years, to bolster government spending and revive growth.

Additionally, the government plans to extend support to struggling local governments in economic distress.

Senior analyst at Swissquote Bank, Ipek Ozkardeskaya, considers the growth target ambitious. Despite Chinese stimulus hopes, U.S. crude failed to sustain gains above $80 per barrel.

Crude prices faced a setback on Monday following OPEC+'s decision to prolong voluntary production cuts of 2.2 million barrels per day into the second quarter.

According to commodity analyst Carsten Fritsch from Commerzbank, while the extension was anticipated, it aims to prevent oversupply in the upcoming months.

—Associated Press contributed.