Oil prices climbed on Wednesday as expectations grew for increased demand in China, the world’s largest crude importer, following Beijing’s announcement of more relaxed monetary policies aimed at boosting economic growth.
Brent crude futures rose 36 cents, or 0.5%, to $72.55 per barrel by 0430 GMT, while U.S. West Texas Intermediate crude futures gained 36 cents, or 0.5%, to $68.95.
On Monday, China revealed plans to adopt an “appropriately loose” monetary policy in 2025, marking its first shift toward easing in 14 years as it seeks to revitalize its economy.
“Oil prices have recently found support, driven by stronger policy signals from Chinese authorities, rekindling hopes for more robust stimulus measures in 2025,” said Yeap Jun Rong, a market strategist at IG. “However, gains remain capped as investors await more concrete actions beyond optimistic messaging.”
Chinese crude imports saw an annual increase in November for the first time in seven months, jumping over 14% year-on-year.
Despite these policy shifts, Mukesh Sahdev, head of oil analysis at Rystad Energy, cautioned that China’s measures might not fully offset potential challenges posed by proposed trade policies from President-elect Donald Trump. “At best, these changes can help mitigate further downside risks,” he noted.
In the U.S., crude oil and fuel inventories rose last week, according to figures from the American Petroleum Institute (API) released on Tuesday. Crude inventories increased by 499,000 barrels in the week ending December 6, according to sources who spoke anonymously. Gasoline stocks rose by 2.85 million barrels, while distillate inventories grew by 2.45 million barrels, the sources added.
Official oil stock data from the U.S. Energy Information Administration is set to be released on Wednesday at 10:30 a.m. ET (1530 GMT). A Reuters poll of analysts forecasts a 900,000-barrel decline in crude inventories and a 1.7 million-barrel rise in gasoline stocks.
