Oil prices stabilized on Tuesday as China indicated that it would take steps toward providing economic support to its struggling property sector, there helping to restore economic stability to the country.
West Texas Intermediate futures, the U.S. benchmark, continued to hover around $73 per barrel as the Chinese government pressured banks around the nation to ease terms for property companies. State-run newspapers claimed that additional measures of support may be introduced as well.
Still, it remains to be seen whether such measures will be enough to uplift the entire Chinese economy as the country’s economic rebound after the COVID pandemic remains incomplete.
“From a perspective of risk appetite, the Chinese measures are important but not enough to move the needle, and more initiatives will be needed,” Ole Sloth Hansen, head of commodity strategy at Saxo Bank A/S, believes.
Oil prices have received support from recent decisions by OPEC+ members Saudi Arabia and Russia to implement supply cuts over the summer. They’ve also been helped by rising U.S. demand.
Data released last week from ADP Research Institute in collaboration with Stanford Digital Economy Lab showed that U.S. job security is on the rise, with the nation adding almost 500,000 new jobs last month.
