Oil prices rise slightly on hopes for Chinese stimulus

Brent crude rose 11 cents, or 0.2%, to $73.69 per barrel, while US West Texas Intermediate crude was up 15 cents, or 0.2%, at $70.25.

Hopes for Chinese stimulus

China, the world’s largest oil importer, announced plans to increase financial support for consumption next year, including boosting pensions, supporting medical insurance, and expanding consumer goods exchange operations. Additionally, the Chinese government approved the issuance of 3 trillion yuan ($411 billion) in special treasury bonds to revive its struggling economy.

Satoru Yoshida, a commodities analyst at Rakuten Securities, commented, "Hopes over China’s stimulus measures are supporting the market."

US crude inventories and supply concerns

Oil prices were also buoyed by expectations of a drop in US crude and fuel inventories, with data from the Energy Information Administration expected on Friday. On the supply side, Libya’s National Oil Corporation reported that the country’s average crude production had surpassed its 2024 target of 1.4 million barrels per day.

Global factors supporting oil prices

In addition to China's stimulus, expectations of growth in fossil fuel production and demand, especially following Donald Trump's upcoming presidential term, are providing further support to oil prices.