December 26, 2024 (MLN): Oil prices edged higher on Thursday in thin holiday trading, driven by hopes for additional fiscal stimulus in China, the world's biggest oil importer, while an anticipated decline in US crude inventories also provided support.
Brent crude futures up by $0.95, or 1.31%, to $73.58 per barrel.
West Texas Intermediate (WTI) crude futures increased $0.26, or 0.37%, to $70.36 per barrel by [9:27am] PST.
China plans to boost fiscal support for consumption next year by increasing pensions and medical insurance subsidies for residents.
Additionally, the government aims to expand trade-ins for consumer goods, according to a finance ministry announcement on Tuesday, according to Reuters.
Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) worth of special treasury bonds next year, Reuters reported on Tuesday, citing two sources.
This move comes as Beijing ramps up fiscal stimulus to revive a faltering economy.
"Hopes for China's stimulus measures are supporting the market," said Satoru Yoshida, a commodity analyst at Rakuten Securities.
"Expectations that fossil fuel production and demand will expand after Donald Trump takes office as US President next month are also bolstering oil prices," he added.
An anticipated decline in U.S. crude and fuel inventories was also supporting the market.
An extended Reuters poll showed on Tuesday that crude inventories are expected to have fallen by about 1.9 million barrels in the week to December 20.
Gasoline and distillate inventories are seen falling by 1.1mn barrels and 0.3mn barrels, respectively.
US crude oil and distillate stocks fell last week, market sources said, citing American Petroleum Institute figures on Tuesday.
The latest data from the Energy Information Administration, the statistical arm of the US Department of Energy, is due at 1pm EST (1800 GMT) on Friday.
On the supply side, Libya's National Oil Corp (NOC) said on Wednesday that the country's average crude production in 2024 exceeded its target of around 1.4mn barrels per day.
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Posted on: 2024-12-26T09:34:01+05:00
