Oil prices rise due to stimulus measures from China

Last weekend, world oil prices increased slightly due to economic recovery thanks to stimulus measures in China - the world's largest oil importer.

Oil prices edged up on Friday and were on track for a weekly gain, boosted by expectations of an economic recovery fueled by stimulus measures in China, the world’s largest oil importer, as well as forecasts of a decline in U.S. oil inventories.

Analysts polled by Reuters expected U.S. crude inventories to fall by about 1.9 million barrels last week, while market sources said the American Petroleum Institute (API) estimated a decline of 3.2 million barrels.

Brent crude futures rose 4 cents to $73.30 a barrel at 0912 GMT. U.S. West Texas Intermediate (WTI) crude futures were at $69.81, up 19 cents from Thursday's close. For the week, Brent rose 0.5% and WTI rose 0.4%.

Oil prices rise sharply due to stimulus measures from China. Photo: Reuters

“We may be back in an uptrend on expectations of a drawdown in US inventories,” said UBS analyst Giovanni Staunovo. Some support for oil prices could soon come from higher demand due to cold weather.

The official weekly inventory report from the US Energy Information Administration (EIA) is due at 1 p.m. EST (18:00 GMT), later than usual due to the Christmas holiday.

Optimism about China's economic growth and oil demand was bolstered on Thursday as the World Bank raised its forecast for China's economic growth for 2024 and 2025, but also noted that low confidence among households and businesses would continue to be a headwind next year.

China has agreed to issue 3 trillion yuan ($411 billion) worth of special treasury bonds by 2025 to revive its sluggish economy, Reuters reported this week.

However, a stronger US dollar capped oil’s gains, supported by expectations that the policies of the new administration of President-elect Donald Trump will boost growth and raise inflation.

A stronger US dollar makes oil more expensive for buyers using other currencies.

Source: https://congthuong.vn/gia-dau-tang-do-giai-phap-kich-cau-tu-trung-quoc-366940.html