Oil Prices Steady on US Growth Hopes

23 Dec 2024 , 09:53 AM

Following U.S. statistics showing decreasing inflation, which raised expectations of additional policy easing next year to help global economic growth and oil demand, oil prices and other risk assets edged higher on Monday.

Brent crude futures were up 26 cents, or 0.4%, to $73.20 a barrel. At $69.77 a barrel, U.S. West Texas Intermediate crude futures increased 31 cents, or 0.5%.

After the U.S. central bank indicated caution over further easing of monetary policy last week, worries about global economic growth and oil demand caused both oil benchmarks to drop more than 2%. Prices were also impacted by research by Sinopec, the leading refiner in Asia, which indicated that China’s oil demand will peak in 2027.

Reports that the Druzhba pipeline, which transports oil from Russia and Kazakhstan to Hungary, Slovakia, the Czech Republic, and Germany, has resumed after stopping on Thursday owing to technical issues at a Russian pumping station have allayed worries about the European supply.

According to Belarus’ official news agency BelTa, shipments started up again on Saturday. Peter Szijjarto, the foreign minister of Hungary, announced on Sunday that the country’s Druzbha supplies had resumed.

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