Oil prices remained relatively stable on Friday, although they were on track for a modest weekly increase fueled by expectations that economic stimulus in China, the world’s largest oil importer, would boost recovery prospects.
Brent crude futures slipped by a marginal 1 cent, settling at $73.25 per barrel by 0145 GMT. U.S. West Texas Intermediate (WTI) crude edged down by 2 cents to $69.60 per barrel. For the week, Brent was up by 0.4%, while WTI posted a 0.2% increase.
The World Bank on Thursday revised its economic growth forecast for China in 2024 and 2025 upward. However, the bank cautioned that lingering challenges, including tepid household and business sentiment and persistent struggles in the property sector, could dampen the momentum in 2025.
In a related development, China revised the size of its economy upward by 2.7% on Thursday, a move officials said would minimally impact growth projections for this year. Meanwhile, policymakers pledged further fiscal measures aimed at accelerating expansion in 2025. Among these efforts is the issuance of 3 trillion yuan ($411 billion) in special treasury bonds next year, underscoring Beijing’s commitment to invigorating its slowing economy.
On the supply front, data from the American Petroleum Institute (API) indicated U.S. crude stockpiles fell by 3.2 million barrels last week, according to market sources. Traders are awaiting confirmation from the Energy Information Administration (EIA), whose report is expected later on Friday at 1 p.m. EST (1800 GMT), delayed due to the Christmas holiday.
A Reuters poll of analysts anticipates a 1.9-million-barrel decline in U.S. crude inventories for the week ending December 20. Gasoline and distillate stocks are projected to drop by 1.1 million barrels and 0.3 million barrels, respectively.
With a confluence of bullish signals from China’s stimulus measures and declining U.S. inventories, market sentiment is tilting cautiously positive as the week concludes.
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