Oil gains on demand hopes from ‘looser’ Chinese monetary policy
Traders expect an increase in demand in the world’s largest crude importer
11 December 2024 - 08:10
byNicole Jao and Jeslyn Lerh
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Singapore — Oil prices rose on Wednesday, with market participants expecting demand to rise in the world’s largest crude importer, after Beijing announced a looser monetary policy to stimulate economic growth in China.
Brent crude futures gained 36c, or 0.5%, to $72.55 a barrel by 4.30am GMT, while US West Texas Intermediate crude futures rose 36c, or 0.5%, to $68.95.
China said on Monday it would adopt “appropriately loose” monetary policy in 2025 as Beijing tries to spur its economy with the first easing of its stance in 14 years.
“Oil prices managed to find a footing lately, as stronger policy signals from Chinese authorities have once again rekindled hopes for stronger stimulus measures to come in 2025,” said Yeap Jun Rong, market strategist at IG.
“But price gains are still somewhat constrained, given that market participants still want to see more concrete details beyond the typical positive messaging,” Yeap said.
Chinese crude imports grew annually for the first time in seven months in November, up more than 14% from a year earlier.
China’s policy changes, however, may not be able to counter any fallout from some of the trade measures proposed by president-elect Donald Trump, said Mukesh Sahdev, head of oil analysis at Rystad Energy.
“This [China’s policy changes] can only help prevent further downsides at best,” he said.
In the US, crude oil and fuel stocks rose last week, market sources said on Tuesday, citing American Petroleum Institute figures on Tuesday.
Crude stocks rose by 499,000 barrels in the week ended on December 6, the sources said on condition of anonymity. Petrol inventories rose by 2.85-million barrels, and distillate stocks rose by 2.45-million barrels, they said.
Official data on oil stocks from the US Energy Information Administration is due on Wednesday at 3.30pm GMT. Analysts polled by Reuters expect a 900,000-barrel decline in crude and a 1.7-million-barrel increase in petrol.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Oil gains on demand hopes from ‘looser’ Chinese monetary policy
Traders expect an increase in demand in the world’s largest crude importer
Singapore — Oil prices rose on Wednesday, with market participants expecting demand to rise in the world’s largest crude importer, after Beijing announced a looser monetary policy to stimulate economic growth in China.
Brent crude futures gained 36c, or 0.5%, to $72.55 a barrel by 4.30am GMT, while US West Texas Intermediate crude futures rose 36c, or 0.5%, to $68.95.
China said on Monday it would adopt “appropriately loose” monetary policy in 2025 as Beijing tries to spur its economy with the first easing of its stance in 14 years.
“Oil prices managed to find a footing lately, as stronger policy signals from Chinese authorities have once again rekindled hopes for stronger stimulus measures to come in 2025,” said Yeap Jun Rong, market strategist at IG.
“But price gains are still somewhat constrained, given that market participants still want to see more concrete details beyond the typical positive messaging,” Yeap said.
Chinese crude imports grew annually for the first time in seven months in November, up more than 14% from a year earlier.
China’s policy changes, however, may not be able to counter any fallout from some of the trade measures proposed by president-elect Donald Trump, said Mukesh Sahdev, head of oil analysis at Rystad Energy.
“This [China’s policy changes] can only help prevent further downsides at best,” he said.
In the US, crude oil and fuel stocks rose last week, market sources said on Tuesday, citing American Petroleum Institute figures on Tuesday.
Crude stocks rose by 499,000 barrels in the week ended on December 6, the sources said on condition of anonymity. Petrol inventories rose by 2.85-million barrels, and distillate stocks rose by 2.45-million barrels, they said.
Official data on oil stocks from the US Energy Information Administration is due on Wednesday at 3.30pm GMT. Analysts polled by Reuters expect a 900,000-barrel decline in crude and a 1.7-million-barrel increase in petrol.
Reuters
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