WTI Crude Oil Prices Eye Weekly Gain Amid China Stimulus Hopes
Oil prices flat on Friday at $69.59, up for the week. China’s economic stimulus plans have lifted the mood in the oil market.
As the world’s biggest oil importer, China’s recovery is the key to stabilising demand.
On Thursday, China said it will issue 3 trillion yuan ($411 billion) in special treasury bonds next year to boost economic recovery. The World Bank also revised its growth forecast for China in 2024 and 2025. But it warned that property sector challenges and low consumer confidence will cap growth.
China’s 2.7% GDP upgrade shows the government is serious about using fiscal stimulus to boost growth. Oil traders are counting on this to get industrial activity and energy demand going in 2025.
U.S. Inventory Data Fuels Speculation
Oil markets are also watching the latest U.S. crude inventory data. The American Petroleum Institute (API) said crude stockpiles fell 3.2 million barrels last week. Analysts surveyed by Reuters expect the Energy Information Administration (EIA) to report a 1.9 million barrel decline on Friday.
Gasoline and distillate inventories are expected to have fallen 1.1 million and 0.3 million barrels respectively. Falling inventories could be bullish for oil prices.
Technical Analysis: WTI Crude Oil (XTI/USD)
WTI crude oil is consolidating near the $69.70 pivot point, forming a symmetrical triangle on the 4-hour chart. This pattern underscores market indecision, with a breakout likely to determine the next directional move.
Resistance Levels: Immediate resistance is at $70.75, with higher levels at $71.37 and $71.95.
Support Levels: Key support lies at $68.46, followed by $67.67 and $67.04.
The 50-day EMA at $69.69 aligns with the pivot, reflecting a neutral bias. The RSI at 46.91 indicates weak momentum, suggesting potential downside risks. A break below $69.70 could trigger bearish momentum, targeting lower support levels. Conversely, a move above $70.75 may signal recovery potential.

Key Takeaways
China’s Stimulus: $411 billion in bonds aims to boost economic recovery and oil demand.
Inventory Decline: U.S. crude stockpiles fell by 3.2 million barrels, tightening supply.
Technical Outlook: Symmetrical triangle pattern indicates consolidation; breakout levels are critical.
WTI crude oil remains at a pivotal juncture as traders balance hopes of Chinese recovery with supply-side dynamics. All eyes are now on the EIA report and China’s economic trajectory for further direction.
