WTI Crude Rises on China’s Fiscal Stimulus While Trump-Zelenskyy Peace Talks Stall

WTI crude prices rebounded in early trading today following a pledge from Chinese authorities to broaden fiscal spending in 2026. This move signals the government's commitment to sustained economic support amid a challenging international environment. The announcement came after the annual Central Economic Work Conference, where top officials gathered to set fiscal policy priorities for the coming year.

On Sunday (Dec 28), the Chinese Ministry of Finance issued a statement outlining plans to expand targeted investments in high-priority sectors, including advanced manufacturing, technological innovation, and human capital development.

This reinforces expectations that Beijing is prepared to rely more heavily on fiscal policy to bolster growth, as the economy grapples with a prolonged property market slump and mounting external pressures.

Meanwhile, geopolitical tensions remain a focal point. Ukrainian President Volodymyr Zelenskyy traveled from a frigid, missile-stricken Kyiv on Sunday to meet with President Donald Trump. Zelenskyy's objective was to secure Trump’s endorsement for a revised 20-point peace plan aimed at ending the war in Ukraine.

Following more than three hours of negotiations, neither side announced any significant breakthroughs in the protracted effort to end the conflict initiated by Russia. Both leaders emphasized that the process is complex and will require more time.

Trump, who had held a phone call with Russian President Vladimir Putin earlier that same day, maintained a stance that appeared somewhat sympathetic to Moscow's position. The Sunday meeting concluded without major announcements, further highlighting the deep-seated difficulties in reaching a resolution.

Trump stated that teams from the U.S., Ukraine, and Europe would continue to convene in the coming weeks, potentially in Washington D.C. He is also expected to hold further discussions