Oil prices rise on strong US crude drawdown, economic optimism
Date
12/29/2024 8:48:38 AM
(MENAFN) Oil prices ended more than 1 percent higher on Friday, posting a weekly gain amid low trading volume ahead of the year-end. Prices were buoyed by a larger-than-expected reduction in US crude inventories last week. brent crude futures increased by 91 cents, or 1.2 percent, to close at USD74.17 per barrel, while US West Texas Intermediate (WTI) crude futures rose by 98 cents, or 1.4 percent, to settle at USD70.60 per barrel, according to the Al-Attiyah Foundation's Weekly energy Market Review.
For the week, both Brent and WTI crude recorded a gain of about 1.4 percent. US crude oil inventories decreased by 4.2 million barrels for the week ending December 20, as refiners increased activity and the holiday season boosted fuel demand, data from the US Energy Information Administration revealed on Friday. Additionally, optimism surrounding China’s economic growth has raised expectations of higher demand next year from the world’s largest oil importer. The World Bank recently raised its forecast for Chinese economic growth in 2024 and 2025.
Meanwhile, Chinese authorities have agreed to issue special treasury bonds worth 3 trillion yuan (USD411 billion) next year as part of efforts to revive the sluggish economy, sources told Reuters. The Russia-Ukraine conflict, which had faded from energy market concerns due to stagnant oil demand, is now regaining attention after recent developments that could affect oil supplies in 2024, analysts noted.
Although tensions in the Middle East have risen following Israel’s raid on a Gaza hospital and strikes in Yemen, these events are unlikely to significantly affect oil prices in the coming year.
MENAFN29122024000045016755ID1109039377
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.