China Stimulus Boosts Oil Prices

27 Dec 2024 , 09:59 AM

With hopes that economic stimulus measures will spur a resurgence in China, the world’s largest oil importer, oil prices were little changed on Friday but were expected to climb weekly.

Brent crude prices dropped 1 cent to $73.25 a barrel. At $69.60, U.S. West Texas Intermediate crude was down 2 cents from its closing price on Thursday. On a weekly basis, however, WTI increased by 0.2% and Brent by 0.4%.

The World Bank increased its 2024 and 2025 economic growth prediction for China on Thursday, but cautioned that the country’s economy would continue to struggle in 2025 due to weak business and family confidence and challenges in the real estate market.

China increased the size of its economy by 2.7% on Thursday, but stated that the adjustment would not significantly affect growth this year because leaders had promised additional stimulus to promote growth in 2025.

As Beijing increases fiscal stimulus to boost a struggling economy, Chinese officials have decided to sell special treasury bonds worth 3 trillion yuan ($411 billion) in the upcoming year.

According to market sources on Tuesday, the American Petroleum Institute industry group’s most recent weekly assessment on U.S. inventories revealed that crude stocks dropped by 3.2 million barrels last week.

Investors will be watching to see if the Energy Information Administration’s official inventory report validates the drop. The EIA data is due on Friday at 1 p.m. EST (1800 GMT).

For feedback and suggestions, write to us at [e-mail]