Oil prices experienced a slight increase on December 26, 2024, as markets reacted to expectations of additional fiscal stimulus from China, the world's largest oil importer. Brent crude futures rose by 11 cents, or 0.2%, reaching $73.69 per barrel, while U.S. West Texas Intermediate crude climbed 15 cents, also up 0.2%, to $70.25 per barrel.
China's finance ministry announced plans to enhance fiscal support for consumption in the upcoming year, which includes raising pensions and medical insurance subsidies for residents, alongside expanding trade-ins for consumer goods. Furthermore, Chinese authorities are set to issue special treasury bonds worth 3 trillion yuan (approximately $411 billion) to stimulate the economy.
Analysts noted that the optimism surrounding these stimulus measures is contributing to the upward trend in oil prices. Additionally, expectations of a decline in U.S. crude and fuel inventories have provided further support to the market. An extended poll indicated a projected decrease of around 1.9 million barrels in crude inventories for the week ending December 20, with gasoline and distillate inventories also anticipated to fall.
On the supply front, Libya's National Oil Corporation reported that the country's average crude production for 2024 has surpassed its target of approximately 1.4 million barrels per day.