Oil Gains Amidst China Optimism

26 Dec 2024 , 10:48 AM

Hopes for more fiscal stimulus in China, the world’s largest oil importer, and an expected drop in U.S. crude stocks also helped oil prices rise on Thursday in light holiday activity.

Brent crude futures were up 11 cents, or 0.2%, to $73.69 a barrel. In comparison to Tuesday’s pre-Christmas settlement, U.S. West Texas Intermediate crude was up 15 cents, or 0.2%, at $70.25 per barrel.

According to a finance ministry announcement on Tuesday, China intends to increase fiscal support for consumption in the upcoming year by expanding trade-ins for consumer items and raising pensions and medical insurance subsidies for citizens.

As Beijing increases fiscal stimulus to boost a struggling economy, Reuters reported on Tuesday that Chinese authorities have decided to issue 3 trillion yuan ($411 billion) worth of special treasury bonds next year, citing two sources.

The market was also being supported by an expected drop in U.S. fuel and oil stockpiles.

Crude stockpiles are predicted to have decreased by roughly 1.9 million barrels in the week ending December 20th, according to a lengthy Reuters poll released on Tuesday. Inventory levels of distillate and gasoline are predicted to drop by 0.3 and 1.1 million barrels, respectively.

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