China’s Oil Demand Surges: Crude Prices Rise Amid Policy Shifts
Oil prices saw gains this week, spurred by optimistic signals from China’s policy adjustments.
Beijing announced plans to implement a “loosely appropriate” monetary policy in 2025, marking its first shift in 14 years. This move aims to boost economic growth and alleviate market concerns regarding slowing demand.
China, the world’s largest crude importer, reported a 14% annual increase in oil imports for November, breaking a seven-month stagnation. These figures highlight a recovering appetite for crude.
“Oil markets have gained footing, bolstered by policy hopes from Chinese authorities. However, further price movement will require concrete stimulus details,” noted Yeap Jun Rong, IG strategist.
Despite the positivity, analysts like Mukesh Sahdev of Rystad Energy caution that China’s policy changes may stabilize the market rather than drive substantial upward momentum.
U.S. Oil Inventory Trends
In the U.S., crude inventories rose by 499,000 barrels last week, with gasoline and distillate stocks increasing by 2.85 million and 2.45 million barrels, respectively, as per American Petroleum Institute data. These builds offset expectations of a decline, raising concerns about near-term domestic demand.
Analysts anticipate a mixed report from the U.S. Energy Information Administration, with crude inventories projected to fall by 900,000 barrels while gasoline stocks may rise by 1.7 million barrels.
Technical Outlook: WTI Crude Oil
WTI crude is trading at $69.01, following an upward trajectory within an ascending channel. Immediate resistance lies at $69.83, with further targets at $70.50, while support is anchored at $68.36.
- RSI at 62.72 indicates positive momentum but warns of potential short-term consolidation.
- The 50 EMA at $68.27 offers a robust support base for ongoing gains.
- Sustained trading above the pivot at $68.36 signals bullish potential, with a breakout above $69.83 paving the way for $70.50.
China’s demand resurgence and U.S. inventory shifts will remain pivotal drivers of oil prices heading into 2025.
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