Oil prices ticked up slightly on Wednesday, driven by hopes of rising demand from China next year following Beijing’s announcement of a more accommodative monetary policy.
By 2:20 pm AEDT (3:20 am GMT) Brent crude futures added $0.43, or 0.4%, to US$72.62 per barrel, while U.S. West Texas Intermediate (WTI) crude gained $0.43, or 0.6% to $69.02.
China’s decision to implement an "appropriately loose" monetary policy in 2025 marks its first easing of this kind in 14 years. This shift aims to bolster economic growth and stimulate demand.
In the United States, crude oil and fuel inventories rose last week, according to market sources citing data from the American Petroleum Institute (API). Crude stocks increased by 499,000 barrels in the week ending 6 December.
Official inventory data from the U.S. Energy Information Administration (EIA) is scheduled for release on Wednesday. Analysts are expecting a 1.3 million-barrel decline in crude stocks but expect gasoline inventories to rise by 900,000 barrels.