Wedoany.com Report-Dec 13, Oil prices increased on Wednesday supported by economic stimulus measures in China, the world’s biggest crude importer, aimed at boosting domestic growth.
The international oil benchmark of Brent crude rose by 0.44% to $72.15 per barrel at 10.48 a.m. local time (0748 GMT), up from the previous session's close of $71.83.
The US benchmark West Texas Intermediate also increased by 0.45% to $68.42 per barrel, compared to $68.11 at the close of the prior session.
The government held a meeting on Monday to discuss and analyze the economic policies for 2025.
At the meeting, a call was made to follow a more active budget and a moderately loose monetary policy for next year, and increased infrastructure spending, monetary easing, and targeted fiscal support are expected to fuel demand for energy.
These measures are expected to support higher oil consumption in China and contribute to increased market optimism, prompting the rise in oil prices.
Also, in a bid to combat possible US tariffs once President elect Donald Trump takes office in January, China's President Xi Jinping Tuesday called for embracing global solidarity and cooperation.
Xi's call for cooperation came as US President-elect Trump has vowed to raise high tariffs on Chinese imports which could trigger a trade war between the world's top two economies.
'Global solidarity, cooperation, mutual benefit, and win-win should become the defining theme of our times,' Xi said.
'China hopes the United States will work with China to push bilateral relations toward a steady, healthy, and sustainable direction,' China's president added
While, market players await weekly crude inventory data to gauge demand in the US, the world’s biggest oil consumer.
Also, analysts noted that the inflation data today is crucial before the US Federal Reserve's (Fed) last interest rate decision of the year.
With recent economic indicators, the probability of a 25-basis-point rate cut at the Fed's December 18 meeting increased to 86%.
Meanwhile, investors are closely watching the upcoming oil market reports from the International Energy Agency and the Organization of Petroleum Exporting Countries (OPEC).
（Picture: Veer）
