WTI remains solid around $67.50 due to China’s stimulus measures, Middle-East tensions

• WTI climbs as China unveils new measures to stimulate consumption. 
• Houthis take responsibility for attacking the USS Harry S. Truman aircraft carrier. 
• Oil prices gain support amid waning optimism for a quick resolution to the Ukraine war.

West Texas Intermediate (WTI) Oil price extends its winning streak for a second consecutive session, trading around $67.40 per barrel during Asian market hours on Monday. The gains come as crude prices strengthen following China’s, the world’s largest oil importer, announcement of new measures to boost consumption.

On Sunday, Beijing announced a special initiative aimed at reviving domestic consumption. The plan includes wage increases, incentives to boost household spending, and efforts to stabilize stock and real estate markets.

Oil prices also received support from escalating geopolitical tensions in the Middle East, which have raised concerns over supply disruptions. On Sunday, the Houthis claimed responsibility for an attack involving 18 ballistic and cruise missiles, as well as drones, targeting the USS Harry S. Truman aircraft carrier and its escorting warships in the northern Red Sea.

Meanwhile, US Defense Secretary Lloyd Austin reaffirmed that the United States (US) would continue targeting Yemen’s Houthis until they cease their attacks on shipping. The Iran-backed group, in turn, has vowed to escalate its retaliation in response to recent US strikes.

Additionally, crude Oil prices found support from fading hopes for a swift resolution to the war in Ukraine, which could have led to increased Russian energy supplies to Western markets. However, discussions on a potential ceasefire may take place this week, as US President Donald Trump and Russian President Vladimir Putin are expected to engage in talks.

Steve Witkoff, Trump’s envoy, stated on Sunday that he anticipates the two leaders will speak, adding that Putin “accepts the philosophy” of Trump’s ceasefire proposal, according to *The Guardian*. Last week, the US and Ukraine proposed a 30-day ceasefire to Russia, with Putin reportedly showing support for the initiative.