Crude oil prices fell throughout Tuesday from China’s disappointing stimulus announcement eclipsing fears of a broader conflict in the Middle East, DBS’ FX strategist Philip Wee notes.

Brent erases Monday’s 3.7% rise

“Returning from its Golden Week holiday, the Shanghai Composite Index opened 10% higher in anticipation of more fiscal stimulus. However, the gains were trimmed to 4.6% when the outcome fell short of expectations.”

“Brent fell 4.6% to $77.18/barrel, erasing Monday’s 3.7% rise to 80.93. While oil prices have risen from the year’s low, they are still below levels a year ago, another reason why the Fed is not overly worried about inflation.”