Oil Prices Steady, Set for Weekly Gains Amid Optimism on China Stimulus
Oil prices remained largely unchanged on Friday but were on track for a weekly gain, buoyed by optimism that economic stimulus measures could drive a recovery in China, the world’s largest oil importer.
By 0145 GMT, Brent crude futures had slipped 1 cent to $73.25 per barrel, while U.S. West Texas Intermediate (WTI) crude edged down 2 cents to $69.60 per barrel. On a weekly basis, however, Brent rose 0.4%, and WTI climbed 0.2%.
The World Bank raised its economic growth forecast for China for 2024 and 2025 on Thursday, though it cautioned that weak household and business confidence and challenges in the property sector could dampen growth in the coming year.
China also revised the size of its economy upward by 2.7%, stating the adjustment would have minimal impact on growth for 2023. Policymakers pledged to boost economic expansion in 2025 with further stimulus measures. This includes issuing 3 trillion yuan ($411 billion) in special treasury bonds, signaling a commitment to fiscal stimulus to bolster the slowing economy.
U.S. Inventory Data in Focus
The American Petroleum Institute reported a 3.2 million-barrel decline in U.S. crude stocks last week, according to market sources. Traders are now awaiting confirmation from the official Energy Information Administration (EIA) report, due at 1 p.m. EST (1800 GMT) on Friday, delayed due to the Christmas holiday.
A Reuters poll of analysts estimates U.S. crude inventories fell by approximately 1.9 million barrels in the week ending December 20, while gasoline and distillate inventories are expected to decline by 1.1 million barrels and 0.3 million barrels, respectively.
