Oil prices are rising amid expectations of an economic recovery in China.
As reported by Ukrinform, this information comes from Reuters.
Brent crude oil prices increased by 17 cents, or 0.06%, to $74.82 per barrel after rising by 65 cents on Tuesday, the last trading day of 2024. U.S. West Texas Intermediate futures climbed by 19 cents, or 0.26%, to $71.91 per barrel.
In his New Year’s address on Tuesday, President Xi stated that the country would implement a more proactive policy to promote growth in 2025.
According to a private sector Caixin/S&P Global survey on Thursday, industrial activity in China increased in December, but at a slower pace than expected due to concerns over trade prospects and risks from tariffs proposed by U.S. President-elect Donald Trump.
Investors are awaiting weekly oil inventory data from the U.S. Energy Information Administration, which has been postponed to Thursday due to New Year’s holidays.
It is anticipated that crude oil and distillate stocks in the U.S. decreased last week, while gasoline inventories likely increased, as indicated by a comprehensive Reuters survey on Tuesday.
According to EIA data on Tuesday, U.S. oil demand rose to its highest level since the pandemic in October at 21.01 million barrels per day, approximately 700,000 barrels more than in September.
Crude oil production by the leading global producer increased to a record 13.46 million barrels per day in October, which is 260,000 barrels more than in September, according to the report.
In Europe, Russia halted gas exports through Soviet-era pipelines crossing Ukraine for the New Year. This halt will not affect prices for consumers in the European Union, as some buyers have arranged alternative supplies, while Hungary will continue to receive Russian gas via the "Turkish Stream" pipeline under the Black Sea.