Yahoo Finance UK’s Pedro Goncalves writes:
Oil prices climbed on Tuesday after China unveiled a series of policy measures to support its economy and a major Israeli strike on Hezbollah targets in Lebanon heightened geopolitical tensions in the Middle East.
Brent crude rose above $74 a barrel, recovering from a 0.8% decline on Monday, while West Texas Intermediate (CL=F) hovered near $71. The rally was fuelled by the People’s Bank of China (PBoC), whose governor, Pan Gongsheng, announced a broad set of stimulus initiatives at a briefing in Beijing. The measures are aimed at achieving China’s annual growth target of around 5%, following concerns about the country’s faltering economy.
The stimulus package includes boosting bank lending to consumers and businesses, alongside a cut to the PBoC’s key short-term interest rate, in a bid to stimulate growth and drive energy demand in the world’s largest oil importer.
“At the margin,…
