Investing.com– Prices rose in Asian trading Thursday, with focus on more fiscal stimulus in China, the top importer, as traders digest the ramifications of a Donald Trump presidency.
Crude prices recouped some losses from the previous session after Trump’s victory in the 2024 election sent the dollar surging to a four-month high, squeezing oil markets. The greenback stabilized on Thursday.
Oil markets were also pressured by data showing a larger-than-expected rise in U.S. inventories.
Expiring January oils rose 0.44% to $75.28 a barrel, while oils rose 0.25% to $71.92 a barrel as of 07:25.
China’s NPC meeting monitored for fiscal clues
China’s National People’s Congress began a four-day meeting earlier this week, and is expected to outline plans to increase fiscal spending in the coming months to boost economic growth.
The world’s top oil importer is grappling with a prolonged slowdown in growth, and is expected to announce a sharp increase in fiscal spending. Beijing has announced a series of aggressive stimulus measures over the past month, and the NPC meeting is expected to provide more information on the fiscal front.
Analysts at JPMorgan (NYSE:) said in a recent note that a Trump victory could allow Beijing to implement even more fiscal stimulus, given that Trump has promised to impose high tariffs in the country.
Markets digest Trump’s victory and other US indices
Oil prices initially fell on Wednesday following Trump’s victory in the 2024 presidential election. The initial weakness was driven by fears that U.S. oil production would increase further under Trump, worsening the oil glut. global supply.
But prices pared losses on bets that Trump will take a tough stance on Iran and Venezuela, likely imposing new sanctions against those two countries and reducing some of the world’s oil supply .
Trump is also expected to implement more expansionary policies, which bodes well for economic growth and could support U.S. demand in the years to come.
Beyond US politics, markets were negatively influenced by data showing a larger than expected increase in .
Traders also monitored possible supply disruptions in the Gulf of Mexico from Hurricane Rafael, which is expected to pass through the oil-rich region this week.
A is also expected to end later on Thursday, with the central bank expected to cut interest rates by 25 basis points.
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