Oil prices extended gains on Friday after closing at their highest level in more than two months in the previous session on hopes that policy supports could increase to boost global economic growth and boost fuel demand.
Brent crude futures rose 22 cents, or 0.3%, to $76.15 a barrel by 0420 GMT after settling at their highest level since Oct. 25 on Thursday. WTI Crude rose 25 cents, or 0.3%, to $73.38 a barrel, closing at their highest level since Oct. 14 on Thursday.
Both contracts are on track for their second weekly gains after investors returned from holiday, weighing on trading liquidity.
Factory activity in Asia, Europe and the US ended 2024 on a weak note as New Year expectations dimmed due to Trump returning to the US presidency and China’s fragile economic recovery.
December PMIs for Asia painted a mixed picture, with manufacturing activity and GDP growth expected to remain subdued in the near term, according to Purchasing Managers Index data released on Thursday.
With growth struggling and inflation continuing to run below target in most countries, central banks in Asia are likely to continue easing policy.
While investors expect the Fed to cut interest rates further this year to support the US economy, Chinese President Xi Jinping has vowed to pursue more proactive policies to spur growth.
China’s economic outlook is set to play a major role in 2025, with hopes pinned on government stimulus measures to boost consumption and support oil demand in the coming months.
The market is also eyeing crude prices from Saudi Arabia, the largest exporter of oil. Saudi Arabia may raise crude prices for Asian buyers in February for the first time in three months, tracking increases in benchmark prices in the Middle East last month.
In the United States, the world’s largest oil consumer, gasoline and distillate inventories jumped last week as refineries increased production, while fuel demand hit a two-year low.
Crude stocks fell less than expected, falling 1.2 million barrels last week to 415.6 million barrels, compared with analysts’ expectations of a 2.8 million barrel decline.
Traders are closely watching the latest weather forecasts as expectations of a cold snap in the U.S. and Europe in the coming weeks could boost demand for heating diesel instead of natural gas.
Ekonomy is also prepare for Trump’s presidency on Jan. 20. Trump’s tariffs on China and their impact on global demand patterns will be important on oil prices in 2025.
