West Texas Intermediate (WTI) crude oil extended its rally for a second consecutive session, trading around $67.40 per barrel during Asian market hours on Monday. The rise in oil prices comes as China, the world’s largest crude importer, announced new measures to stimulate domestic consumption.
On Sunday, Beijing unveiled a comprehensive initiative aimed at boosting household spending, which includes wage hikes, financial incentives, and efforts to stabilize stock and real estate markets. The move has fueled optimism about increased oil demand in the world’s second-largest economy.
Geopolitical tensions in the Middle East have also contributed to oil’s upward momentum. On Sunday, Yemen’s Houthi rebels claimed responsibility for an attack on the USS Harry S. Truman aircraft carrier and its escorting warships in the northern Red Sea, involving 18 ballistic and cruise missiles along with drones. In response, U.S. Defense Secretary Lloyd Austin reaffirmed Washington’s commitment to continuing strikes against the Iran-backed Houthis until their assaults on shipping cease. The Houthis, in turn, have vowed to escalate their retaliatory actions.
Oil prices have further gained support amid fading hopes for an imminent resolution to the war in Ukraine. A swift ceasefire could have facilitated increased Russian energy exports to Western markets, but discussions remain uncertain. U.S. President Donald Trump and Russian President Vladimir Putin are expected to engage in talks this week regarding a proposed 30-day ceasefire.
Trump’s envoy, Steve Witkoff, told The Guardian on Sunday that Putin “accepts the philosophy” of Trump’s ceasefire initiative. While the U.S. and Ukraine have presented the proposal to Russia, its final outcome remains unclear.
