(Bloomberg) -- Oil declined after China’s highly anticipated Finance Ministry briefing on Saturday lacked new incentives to boost consumption in the biggest importer, with the specter of Israeli strikes on Iran hanging over the market.
Brent dropped below $78 a barrel after slipping 0.5% on Friday, while West Texas Intermediate traded near $74. While China promised more support for the struggling property sector and hinted at greater government borrowing, the briefing didn’t produce the headline dollar figure for fresh fiscal stimulus that the markets had sought.
Meanwhile, oil traders are continuing to monitor Israel’s response to Iran’s Oct. 1 ballistic missile attack, with one report suggesting it has narrowed down potential targets to military and energy infrastructure. Over the weekend, a Hezbollah drone attack killed four Israeli soldiers, while the Pentagon said it would send an advanced missile defense system and associated troops to help shield its ally.
Brent has risen about 9% this month as the prospect of an escalation in the Middle East conflict threatens output from a region that supplies about a third of the world’s oil. The tensions have seen hedge funds flee bearish bets against the crude benchmark at the fastest pace in nearly eight years.
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