Oil up on demand hopes from China's 'looser' monetary policy
Shafaq News/ Oil prices rose on Wednesday, withmarket participants expecting demand to rise in the world's largest crudeimporter, after Beijing announced a looser monetary policy to stimulateeconomic growth in China.
Brent crude futures gained 36 cents, or 0.5%, to$72.55 a barrel by 0430 GMT, while U.S. West Texas Intermediate crude futuresrose 36 cents, or 0.5%, to $68.95.
China said on Monday it would adopt"appropriately loose" monetary policy in 2025 as Beijing tries tospur its economy with the first easing of its stance in 14 years.
"Oil prices managed to find a footing lately, asstronger policy signals from Chinese authorities have once again rekindledhopes for stronger stimulus measures to come in 2025," said Yeap Jun Rong,market strategist at IG.
"But price gains are still somewhat constrained, giventhat market participants still want to see more concrete details beyond thetypical positive messaging," Yeap said.
Chinese crude imports grew annually for the first time inseven months in November, up more than 14% from a year earlier.
China's policy changes, however, may not be able to counterany fallout from some of the trade measures proposed by President-elect DonaldTrump, said Mukesh Sahdev, head of oil analysis at Rystad Energy.
"This (China's policy changes) can only help preventfurther downsides at best," he said.
In the U.S., crude oil and fuel stocks rose last week,market sources said on Tuesday, citing American Petroleum Institute figures onTuesday.
Crude stocks rose by 499,000 barrels in the week ended onDec. 6, the sources said on condition of anonymity. Gasoline inventories roseby 2.85 million barrels, and distillate stocks rose by 2.45 million barrels,they said.
Official data on oil stocks from the U.S. Energy InformationAdministration is due on Wednesday at 10:30 a.m. ET (1530 GMT). Analysts polledby Reuters expect a 900,000-barrel decline in crude and a 1.7 million-barrelincrease in gasoline.
(Reuters)
