Oil prices climb to highest levels since October due to colder weather
(MENAFN) Oil prices climbed to their highest levels since October as markets assessed the potential impact of colder weather in the northern hemisphere and economic stimulus efforts in China on global fuel demand. By 0125 GMT, brent crude futures had increased by 15 cents, or 0.2 percent, reaching USD76.66 a barrel, following a settlement on Friday at their highest level since October 14. Similarly, West Texas Intermediate (WTI) crude futures gained 22 cents, or 0.3 percent, trading at USD74.18 a barrel after closing at their highest since October 11.
China’s government is intensifying fiscal stimulus to reinvigorate its faltering economy, unveiling a significant boost to long-term treasury bond financing for 2025. Announced on Friday, these measures aim to encourage business investment and drive consumer spending. Investors are closely watching how these initiatives might influence global energy markets, particularly as China remains one of the largest consumers of crude oil worldwide.
On the supply side, Iran’s oil production and exports are anticipated to face declines due to expected political shifts and stricter sanctions under the upcoming administration of U.S. President-elect Donald Trump. According to Goldman Sachs, Iran’s output could decrease by 300,000 barrels per day, dropping to 3.25 million barrels per day by the second quarter of 2025. This development could add further upward pressure on oil prices.
Meanwhile, U.S. oil production indicators show a slight slowdown, as the number of active rigs drilling for oil fell by one to 482 last week, according to energy services firm Baker Hughes. This decrease reflects broader production trends and could influence supply dynamics in the coming months. Together, these factors are shaping a complex outlook for global energy markets as 2025 begins.
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