Oil prices retreated modestly during Tuesday's Asian trade after the previous session’s gains of 1.3% as geopolitical risks in the Middle East and China’s commitment to economic stimulus provided support.
By 2:25 pm AEDT (3:25 am GMT) Brent crude futures slipped by $0.37 or 0.4%, to $71.87 per barrel, while U.S. West Texas Intermediate (WTI) crude dropped $0.29, or 0.4%, to $68.08.
The heightened geopolitical risk follows the ousting of Syrian President Bashar al-Assad, whose government collapsed after rebels seized Damascus. Assad has reportedly fled to Russia, and his prime minister announced plans to transfer power to the rebel-led Salvation Government. The regime change marks the end of Syria’s 13-year civil war and over 50 years of Assad family rule, raising concerns about regional instability.
In addition to geopolitical factors, oil markets responded positively to reports of China adopting a more accommodative monetary policy stance for the first time in 14 years. The world’s largest oil importer aims to boost economic growth with "appropriately loose" policies in 2024, reinforcing optimism about future crude demand.
Despite this, weaker-than-expected Chinese consumer inflation data for November dampened sentiment slightly.