Oil prices rose on Wednesday as the demand is expected in the world’s largest importer of crude, to increase after Beijing announced it will ease monetary policy.
Brent crude futures rose 24 cents, or 0.3%, to $72.43 a barrel by 0730 GMT, while WTI crude futures rose 24 cents, or 0.4%, to $68.83.
China implied on Monday it will adopt an easy monetary policy in 2025 as Beijing tries to revive its economy by easing its stance for the first time in 14 years.
Oil prices have recently found some ground on stronger policy signals from Chinese authorities, reviving hopes for stronger stimulus measures in 2025.
However, market participants want more concrete details beyond the typically positive messages. Price gains are still somewhat limited.
Chinese crude imports rose on an annual basis for the first time in seven months in November, rising more than 14% from a year earlier.
Meanwhile, the impact of China’s policy changes may not be enough to offset trade measures proposed by President-elect Donald Trump. At best, China’s policy changes could help prevent further declines.
Market sources said on Tuesday that U.S. crude and fuel inventories rose last week, citing figures from the American Petroleum Institute (API).
Crude inventories rose by 499,000 barrels in the week ended Dec. 6, the anonymous sources said. Gasoline inventories rose by 2.85 million barrels and distillate inventories by 2.45 million barrels.
Official data on oil inventories from the U.S. Energy Information Administration (EIA) is due on Wednesday at 1530 GMT. Analysts expect crude oil to fall by 900,000 barrels and gasoline to rise by 1.7 million barrels.
