Oil prices saw modest gains in light holiday trading on Thursday, supported by optimism about potential fiscal stimulus in China and expectations of declining United States crude inventories.
Brent crude futures edged up by 13 cents (0.2%) to $73.71 per barrel, while U.S. West Texas Intermediate crude rose by 11 cents (0.2%) to $70.21 per barrel.
“Crude oil prices have risen this week, driven by news that Chinese authorities are implementing a record-breaking 3 trillion yuan fiscal stimulus to boost their struggling economy,” said Priyanka Sachdeva, senior market analyst at Phillip Nova.
“Additionally, a decrease in U.S. crude oil inventories, which indicates healthy demand, has also supported prices.”
Satoru Yoshida, a commodity analyst at Rakuten Securities, noted that expectations of higher fossil fuel production and demand under the incoming U.S. administration of President-elect Donald Trump are contributing to the support for oil prices.
According to an extended Reuters poll, U.S. crude inventories were expected to drop by approximately 1.9 million barrels in the week ending December 20, with gasoline and distillate inventories projected to decline by 1.1 million barrels and 0.3 million barrels, respectively.
Market sources, citing American Petroleum Institute data, confirmed a decrease in U.S. crude and distillate stocks last week.
Meanwhile, Libya’s National Oil Corporation announced on Wednesday that the country’s average crude production in 2024 surpassed its target of approximately 1.4 million barrels per day.
