WATCH THE VIDEO HERE Oil prices went up in the first trading session of the year, making a 2 per cent rise on Thursday, January 2 as investors eyed fresh pledges made on China’s economy and its likely effect on fuel demand, with Brent crude futures up by $1.65 or 2.2 per cent to $76.29 a barrel and the US West Texas Intermediate (WTI) crude futures climbing by $1.75 or 2.4 per cent to trade at $73.47 per barrel. In 2024, China’s demand outlook largely affected the market but President Xi Jinping said in his New Year’s address that the world’s largest oil importer would implement more proactive policies to promote growth in 2025. He said that the world’s second-largest economy had responded to the impacts of the economy by adopting a full range of policies such as broad rate cuts and easing rules in the property market to boost demand. Also, data from the country supported prices after factory a Caixin/S&P Global survey showed on Thursday that activity grew in December to counter an earlier one which showed that China’s manufacturing activity barely grew in December. However, services and construction fared better, with the data suggesting policy stimulus is trickling into some sectors. This comes amid concerns about how tariffs proposed by US President-elect Donald Trump will affect trade. Mr Trump will take office on January 20 and has promised to slam about 60 per cent on Chinese imports as part of his protectionist policies. Some market analysts noted that weaker Chinese data could be positive for oil prices because it could prompt Beijing to accelerate its stimulus programme. However, swelling fuel inventories in the US limited gains as the US Energy Information Administration (EIA) said US gasoline (petroleum) stocks swelled by 7.7 million barrels in the week to 231.4 million barrels, while distillate stockpiles, which include diesel and heating oil, increased by 6.4 million barrels in the week to 122.9 million barrels. Meanwhile, crude stockpiles fell less than expected, decreasing by 1.2 million barrels to 415.6 million barrels. In Europe, Russia halted gas pipeline exports through Ukraine on New Year’s Day after the transit agreement expired on December 31. The European Union has arranged an alternative supply ahead of the widely expected stoppage while Hungary will keep receiving Russian gas via the TurkStream pipeline under the Black Sea.
Oil Prices Soar on Positive Chinese Outlook in First Trade of 2025
