Oil futures: Crude higher on Syria upheaval, China monetary easing

Quantum Commodity Intelligence - Crude oil futures opened the week higher after further upheaval in the Middle East added another layer of uncertainty, while expectations of an economic boost from Beijing also improved sentiment. 

Front-month Feb25 ICE Brent futures were trading at $72.32/b (1805 GMT) versus Friday's settle of $71.12/b, following two consecutive weekly losses.

At the same time Jan25 NYMEX WTI was trading at $68.56/b, versus Friday's settle of $67.20/b.

The Russian foreign ministry confirmed on Sunday that Syrian President Bashar al-Assad had left office and departed the country after militants from Hayat Tahrir al-Sham (HTS) and its allies entered the capital Damascus.

It was reported Monday that Assad had fled to Moscow, where he had been given asylum.

While Syria is only a minor oil producer and has not formerly exported crude in a decade, the upheaval adds to security concerns in the wider region, although potentially leaves Hezbollah losing an important supply route from Iran.  

Renewed geopolitical tensions helped steady markets after benchmarks settled lower last week despite the delay to OPEC+'s planned unwinding of cuts, which are now due to start in April.

China

Prices also increased on expectations that China will announced further stimulus measures this week after an official government document said China will adopt a "moderately loose" monetary policy.

"The easing of monetary policy stance in China is likely the driver of the oil price rebounding, supporting risk sentiment," said UBS analyst Giovanni Staunovo.

Meanwhile, Saudi cut its key OSP for Arab Light to the lowest level in four years over the weekend. The move was widely expected but at the low end of expectations, further indicating regional demand remains sluggish.

On the economic front, the ECB is widely expected to go for a further 25 basis point cut in Europe's interest rates this week, followed by a similar move by the US Fed next week.