Oil Prices Rise on China's Easing Monetary Policy

11 Dec 2024 , 09:26 AM

Early Wednesday saw a minor increase in oil prices as market players anticipated that China’s demand will increase the next year following Beijing’s announcement of a looser monetary policy to boost economic growth.

U.S. West Texas Intermediate crude prices increased 9 cents, or 0.13%, to $68.68, while Brent crude futures increased 10 cents, or 0.14%, to $72.29 a barrel.

In an effort to boost its economy, Beijing announced Monday that it would implement “appropriately loose” monetary policy in 2025—the first softening of its stance in 14 years.

For the first time in seven months, Chinese crude imports increased annually in November, rising more than 14% over the previous year.

According to market sources quoting data from the American Petroleum Institute on Tuesday, crude oil and fuel stockpiles increased in the United States last week.

According to sources speaking on condition of anonymity, crude stocks increased by 499,000 barrels during the week ending December 6. According to them, distillate stocks increased by 2.45 million barrels while petrol inventories increased by 2.85 million barrels.

The U.S. Energy Information Administration is expected to release official oil stock figures on Wednesday at 10:30 a.m. ET (1530 GMT). A 1.7 million-barrel gain in petrol and a 900,000-barrel drop in crude are anticipated by analysts surveyed by Reuters.

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