- WTI prices continue to rise on expectations that governments around the world will increase stimulus levels to support economic growth.
- China’s National Development and Reform Commission has outlined plans to raise money from the government’s long-term revenue to support “two new projects.”
- The EIA’s crude oil inventory fell by 1.178 million barrels, marking the sixth consecutive decline in crude oil inventories.
West Texas Intermediate (WTI) crude oil prices rose for a sixth straight day, trading around $73.00 a barrel in the Asian session on Friday. On Thursday, WTI hit a two-and-a-half-month high of $73.39. Oil prices are being supported by expectations that governments around the world will support policies that will boost economic growth, potentially boosting oil demand.
However, factory activity in Asia, Europe and the US ended 2024 on a soft note due to economic risks from the arrival of Donald Trump and lower expectations for the new year due to the poor economy in China. Usage is expected to increase steadily throughout the year with two new projects.
The Financial Times also reported that the People’s Bank of China is expected to cut interest rates later this year. Investors are awaiting a possible recovery in the Chinese economy and its impact on oil demand. President Xi Jinping reiterated in his New Year’s speech on Tuesday that he would prioritize economic growth in the world’s largest exporter and vowed to implement tighter policies in 2025 to support trade in China.
Purchasing managers’ index (PMI) data released on Thursday “were mixed for December in Asia, but we still expect the region’s manufacturing and GDP growth to remain stable in the near term,” economic analysts said in a report.
Meanwhile, the U.S. Energy Information Administration (EIA) reported that crude oil inventories fell for the week ending Dec. 27. This marked the sixth consecutive decline in crude oil inventories. Additionally, crude oil inventories at the Cushing, Oklahoma delivery facility fell by 142,000 barrels.
