02:39 PM EST, 12/09/2024 (MT Newswires) -- West Texas Intermediate (WTI) crude oil closed higher on Monday as China said it plans to loosen monetary policy as its economy struggles while the rapid collapse of Syria's government added fresh geopolitical risk.

WTI crude oil for January delivery closed up US$1.17 to settle at US$68.37 per barrel, while February Brent crude was last seen up US$1.10 to US$72.22 per barrel.

China's ruling Politburo on Monday promised to loosen monetary policy for the first time in 14 years, the New York Times reported, as the country moves to stimulate its economy amid disinflation and Donald Trump's promise to impose significant tariffs on China's exports to the United States.

The report said a Politburo statement said the country will adopt a "moderately loose" policy, a shift from the "prudent" stance it has maintained since December, 2010, and is expected to result in lower interest rates for the No.1 oil importer, where demand growth has lagged as its economy slows.

However the country also reported prices again deflated in November, with consumer prices down 0.6% and producer prices down 2.5% annualized. The data and the monetary policy decision comes ahead of a major economic conference staged by the Communist Party.

"While we've been consistently bearish on China throughout the year, we think there is a greater chance of an upside surprise on China vs consensus in 2025. Does it matter? From an oil demand perspective, we don't think there is another leg lower for Chinese domestic demand, and 2024's sub-200 kb/d demand growth should be an

achievable hurdle for next year despite the ongoing economic headwind," Brian Leisen, global oil strategist at RBC Capital Markets, said in a report.

The sudden collapse of the long-ruling Assad regime in Syria added fresh geopolitical risk in the Middle East, as rebel forces swiftly moved to capture Damascus, the country's capital, just days after taking Aleppo, Syria's largest city. President Bashar al-Assad fled to Moscow, where he was granted asylum by Vladimir Putin.

"Syria does not have the same influence on oil prices that a similar collapse in Libya saw," PVM Oil Associates noted. "Its importance is of a geographical nature rather than that of any natural resources. The Syrian border touches Turkey, Iraq, Jordan, Israel and Lebanon, with Jordan the only country not in current conflict either internal or external."