The fall of Assad's regime in Syria has significant implications for geopolitical stability in the Middle East, which could affect global oil prices.
China's fiscal stimulus is expected to have a positive long-term impact on oil demand, despite current fluctuations in prices.
If geopolitical tensions continue to escalate in the Middle East, oil prices may experience further volatility.
Should the U.S. inflation data indicate a stronger economy, it could lead to a delay in anticipated interest rate cuts by the Federal Reserve.
Oil prices fell on December 10, 2024, as geopolitical tensions in the Middle East rose following the collapse of Bashar al-Assad's regime in Syria. Despite the decline, oil prices retained most of their gains from the previous day, influenced by China's commitment to fiscal stimulus aimed at bolstering economic growth. Brent crude futures decreased by 0.36% to $71.88 per barrel, while U.S. West Texas Intermediate (WTI) crude futures fell 0.3% to $86.07. The geopolitical instability in Syria, although not a major oil producer, adds a risk premium to crude oil prices due to its strategic location and ties to Russia and Iran.
The dollar stabilized against major currencies, with the dollar index rising 0.16% to 106.05 points. Investors are closely watching U.S. inflation data set to be released, which may influence the Federal Reserve's interest rate decisions. The Australian dollar fell to a four-month low as speculation grew around potential interest rate cuts, while the euro and pound saw slight increases against the dollar. Meanwhile, gold prices continued to rise, supported by China's stimulus measures and anticipation of U.S. inflation data. Spot gold increased by 0.21% to $2,665 an ounce, reflecting a strong demand for the precious metal amid economic uncertainties.
