{"id":16177,"date":"2024-12-30T07:49:31","date_gmt":"2024-12-30T07:49:31","guid":{"rendered":"https:\/\/www.vtmarkets.com\/?p=16177"},"modified":"2024-12-30T07:49:31","modified_gmt":"2024-12-30T07:49:31","slug":"oil-ticks-higher-with-china-and-u-s-demand","status":"publish","type":"post","link":"https:\/\/www.global-vtrader.com\/en\/analysis\/oil-ticks-higher-with-china-and-u-s-demand\/","title":{"rendered":"Oil Ticks Higher with China and U.S. Demand"},"content":{"rendered":"\n<h2 class=\"wp-block-heading has-medium-font-size\">Key Points<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Brent crude<\/strong> rose to <strong>$74.22<\/strong>, while <strong>WTI crude<\/strong> gained to <strong>$70.63<\/strong>.<\/li>\n\n\n\n<li>Optimism around China&#8217;s economic recovery and U.S. crude inventory drawdowns supported prices.<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\" \/>\n\n\n\n<p class=\"wp-block-paragraph\">Oil prices edged up during thin holiday trading on Monday, reflecting cautious optimism as traders awaited key economic data from China and the United States.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">Here\u2019s the latest news and analysis on the oil market <a href=\"https:\/\/t.co\/XBS4JLiqJ8\">https:\/\/t.co\/XBS4JLiqJ8<\/a><\/p>&mdash; Bloomberg (@business) <a href=\"https:\/\/twitter.com\/business\/status\/1873516513115713937?ref_src=twsrc%5Etfw\">December 29, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Expectations for Chinese economic growth and strong U.S. demand underpinned the market, even as uncertainties surrounding political conflicts and global confidence lingered.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img decoding=\"async\" src=\"https:\/\/www.vtmarkets.com\/wp-content\/uploads\/2024\/12\/image-22-1024x442.jpeg\" alt=\"\" class=\"wp-image-16178\" style=\"width:1450px;height:auto\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><em>Picture: Crude oil consolidates near 70.63, testing resistance at 70.73 as bullish momentum moderates, as seen on the <a href=\"https:\/\/vtmarketsapp.onelink.me\/CD7D\/240525WA\" title=\"\">VT Markets app<\/a>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Oil climbed by 1.43%, with prices recovering from early session lows near 69.32. The MACD line remains above its signal line, although the histogram shows a reduction in bullish momentum as prices approach resistance at 70.733.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The rally was largely driven by a sharper-than-expected drawdown in U.S. crude inventories during the week ending December 20, as refiners ramped up operations to meet the seasonal boost in fuel demand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The lower inventory levels and optimism surrounding China&#8217;s economic recovery have kept traders cautiously bullish heading into 2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Chinese Stimulus Fuels Demand Optimism<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">China&#8217;s <a href=\"https:\/\/t.co\/l4LEvOaljm\">economic outlook<\/a> has taken centre stage, with multiple factors pointing to a recovery that could bolster global oil demand. The Chinese government announced plans to issue a record <strong><a href=\"https:\/\/t.co\/RyOKnfz3UB\">3 trillion yuan<\/a><\/strong><strong> ($411 billion)<\/strong> in special treasury bonds in 2025, aimed at reviving growth in the world\u2019s second-largest economy and top oil importer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Further supporting oil demand expectations, China has allocated <strong><a href=\"https:\/\/www.brecorder.com\/news\/40340166\/china-issues-at-least-152mn-t-in-2025-crude-oil-import-quotas-sources-say\" title=\"\">152.49 million metric tons<\/a><\/strong> of crude import quotas to independent refiners for 2025 in its second batch of allowances. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This substantial quota reflects a forward-looking stance by the government to ensure steady energy supplies for its recovery initiatives.<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-medium-font-size\">Upcoming PMI Surveys and ISM Reports<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Market participants are keenly watching economic data due this week to gauge the trajectory of oil demand. China\u2019s <strong><a href=\"https:\/\/www.investing.com\/economic-calendar\/chinese-manufacturing-pmi-594\" title=\"\">PMI <\/a>factory activity surveys<\/strong>, scheduled for release on Tuesday, are expected to provide critical insights into the effectiveness of recent economic stimulus efforts. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Any signs of a rebound in factory output could signal stronger oil demand in the near term.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On Friday, the U.S. <strong>ISM manufacturing index for December<\/strong> will offer a snapshot of industrial activity in the world&#8217;s largest oil consumer. <\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\"><div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"500\" data-dnt=\"true\"><p lang=\"en\" dir=\"ltr\">&quot;Going into 2025, we&#39;re looking at a 4.2% manufacturing growth,&quot; ISM Manufacturing Business Survey Committee chair Tim Fiore says. &quot;The outlook overall is very positive.&quot; <a href=\"https:\/\/t.co\/aE2f98Uybx\">pic.twitter.com\/aE2f98Uybx<\/a><\/p>&mdash; Yahoo Finance (@YahooFinance) <a href=\"https:\/\/twitter.com\/YahooFinance\/status\/1872679899443691882?ref_src=twsrc%5Etfw\">December 27, 2024<\/a><\/blockquote><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Given the recent drawdown in U.S. crude inventories and steady industrial production, the data could further support oil prices if it points to robust demand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.vtmarkets.com\/trade-now\/\">Create your live VT Markets account<\/a>&nbsp;and&nbsp;<a href=\"https:\/\/myaccount.vtmarkets.com\/login\">start trading<\/a>&nbsp;now.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil prices ticked up in thin holiday trading on Monday as traders await Chinese and U.S. economic data. &#8211; vtmarkets.com <\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27],"tags":[34],"class_list":["post-16177","post","type-post","status-publish","format-standard","hentry","category-analysis","tag-oil"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/16177","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/comments?post=16177"}],"version-history":[{"count":0,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/posts\/16177\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/media?parent=16177"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/categories?post=16177"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.global-vtrader.com\/en\/wp-json\/wp\/v2\/tags?post=16177"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}