Oil Prices Rise Amid Anticipation of Chinese and U.S. Economic Data

Oil Market Overview

Oil prices witnessed a slight increase on Monday as traders prepared for crucial economic data from China and the U.S. at the year’s end. Brent crude futures rose by 20 cents to $74.37 a barrel, demonstrating modest gains in a quiet trading environment. Concurrently, the more actively traded March contract settled at $74.00 a barrel, up 21 cents. Meanwhile, U.S. West Texas Intermediate crude gained 27 cents, reaching $70.87 a barrel.

Impact of Economic Indicators

Market participants are closely monitoring China’s PMI manufacturing surveys, set to be released on Tuesday, and the U.S. ISM report for December, which will come out on Friday. Both the Brent and WTI benchmarks saw an increase of approximately 1.4% last week, buoyed by a larger-than-expected drawdown from U.S. crude inventories, reflecting heightened refinery activity and seasonal demand during the Christmas period.

Future Outlook for Oil Demand

Looking ahead, optimism for China’s economic growth in 2025 is expected to spur demand from the world’s largest crude-importing nation. Recent announcements indicated that Chinese authorities plan to issue a record 3 trillion yuan ($411 billion) in special treasury bonds to stimulate growth. Analysts believe this strategy could lead to improved economic data and increased oil consumption. Despite challenges in the property sector and cautious sentiment among households and businesses, projections indicate a favorable outlook for China’s economy and oil demand in the upcoming years.

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