Oil rises on expanding Chinese factory activity, but set to end year lower
2024.12.30 21:27
SINGAPORE (Reuters) – Oil prices rose in early trade on Tuesday after data showed China’s manufacturing activity expanded in December, but for a second consecutive year oil was on track to end lower due to demand concerns in top consuming countries.
futures rose 47 cents, or 0.7%, to $74.46 a barrel as of 0130 GMT. U.S. West Texas Intermediate crude gained 49 cents, also 0.7%, to $71.48 a barrel. For the year, Brent declined 3.2%, while WTI was down 0.6%.
China’s manufacturing activity expanded for a third straight month in December but at a slower pace, an official factory survey showed on Tuesday, suggesting a blitz of fresh stimulus is helping to support the world’s second-largest economy.
Chinese authorities have also agreed to issue a record 3 trillion yuan ($411 billion) in special treasury bonds in 2025 to revive economic growth, Reuters reported last week.
While a weak longer-term demand outlook has weighed on prices, they could find short-term support from declining stockpiles, which are expected to have fallen by about 3 million barrels last week.
Both Brent and WTI were buoyed by a larger-than-expected drawdown from U.S. crude inventories in the week ended Dec. 20 as refiners ramped up activity and the holiday season boosted fuel demand. [EIA/S]
