{"id":44135,"date":"2024-12-27T12:45:46","date_gmt":"2024-12-27T12:45:46","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/oil-set-to-end-last-week-of-2024-with-modest-gains-on-china-demand-hopes\/"},"modified":"2024-12-27T12:45:46","modified_gmt":"2024-12-27T12:45:46","slug":"oil-set-to-end-last-week-of-2024-with-modest-gains-on-china-demand-hopes","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/oil-set-to-end-last-week-of-2024-with-modest-gains-on-china-demand-hopes\/","title":{"rendered":"Oil set to end last week of 2024 with modest gains on China demand hopes"},"content":{"rendered":"

(Originally posted on : Invezz )<\/b>
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Oil prices were headed for a weekly gain on Friday as optimism over demand recovery from China aided sentiments. <\/p>\n

Meanwhile, a drop in US crude oil inventories also boosted prices on Friday. <\/p>\n

\u201cGeopolitical tensions also added uncertainty, keeping natural gas and oil markets volatile,\u201d Arslan Ali, derivatives analyst at FXempire, said in a report. <\/p>\n

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However, a stronger US dollar, which has risen 7% this quarter, capped further gains, making oil more expensive for non-dollar buyers.<\/p>\n<\/blockquote>\n

At the time of writing, the price of West Texas Intermediate crude oil on the New York Mercantile Exchange was at $69.96 per barrel, up 0.5%. <\/p>\n

Brent crude oil on the Intercontinental Exchange was at $73.11 per barrel, up 0.4% from the previous close.\u00a0<\/p>\n

Both crude benchmarks were on course for small gains this week. <\/p>\n

China optimism<\/h2>\n

Optimism over recovering oil demand from China boosted the market on Friday as the World Bank raised its forecast for economic growth in the Asian country for 2024 and 2025. <\/p>\n

However, the bank also said that subdued household and business confidence would continue to weigh on economic activities next year. <\/p>\n

Authorities in China are likely to issue special treasury bonds, which would amount to $3 trillion yuan or $411 billion in 2025, Reuters reported earlier this week. <\/p>\n

China has been struggling with its economy over the past year as a property crisis and weakening industrial activity weighed on demand for commodities. <\/p>\n

Oil imports have steadily declined throughout the year, pointing to a plateauing of demand growth in the world\u2019s biggest importer of crude. <\/p>\n

Moreover, experts have forecast that China\u2019s oil demand is likely to peak in the coming years. <\/p>\n

Vortexa\u2019s analyst, Emma Li told Invezz last month that gasoline demand in China may peak as early as next year.\u00a0<\/p>\n

Investors will continue to monitor the economic environment in China in the coming weeks for further cues. <\/p>\n

Inventories<\/h2>\n

According to the American Petroleum Institute, crude oil inventories in the US declined by 3.2 million barrels last week. <\/p>\n

Analysts expected inventories to decline by just 700,000 barrels in the week ended December 20.\u00a0<\/p>\n

Investors will now wait for the release of the official data from the US Energy Information Administration later on Friday. <\/p>\n

The release of the data was delayed from Wednesday on account of the Christmas holidays.\u00a0<\/p>\n

The decline in the inventories comes as a relief for oil bulls as production has steadily risen in the US this year.\u00a0<\/p>\n

The EIA expects oil production to average 13.52 million barrels per day next year in the US, a new record high. <\/p>\n

The International Energy Agency has also said that oil supply from countries outside of the Organization of the Petroleum Exporting Countries and allies would drive growth in 2025. <\/p>\n

The US would be at the forefront of supply growth next year, according to the Paris-based agency.\u00a0<\/p>\n

Technical analysis<\/h2>\n

Trading volumes remained low on Friday at the fag end of 2024. Volumes are also expected to be low on the last two days of trading next week. <\/p>\n

The WTI price held near $70 per barrel as it broke above the $69.75 50-day exponential moving average. <\/p>\n

\u201cA sustained move above $69.54 could push oil toward resistance levels at $70.50 and $71.37, signaling renewed bullish momentum,\u201d Ali said. <\/p>\n

Support for prices remains at $68.77 per barrel, followed by $67.88 a barrel.<\/p>\n

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Chart<\/a> by FXempire.<\/em><\/figcaption><\/figure>\n

For Brent crude oil, the immediate resistance is at $73.81 per barrel, followed by $74.54. <\/p>\n

Ali noted:<\/p>\n

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Traders should watch $73 as the key level to gauge the next trend.<\/p>\n<\/blockquote>\n

The post Oil set to end last week of 2024 with modest gains on China demand hopes<\/a> appeared first on Invezz<\/a><\/p>\n

Source link <\/a>
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<\/p>\n","protected":false},"excerpt":{"rendered":"

(Originally posted on : Invezz ) Oil prices were headed for a weekly gain on Friday as optimism over demand recovery from China aided sentiments.  Meanwhile, a drop in US crude oil inventories also boosted prices on Friday.  \u201cGeopolitical tensions also added uncertainty, keeping natural gas and oil markets volatile,\u201d Arslan Ali, derivatives analyst at […]<\/p>\n","protected":false},"author":3947362381,"featured_media":44136,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[39],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/44135"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/3947362381"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=44135"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/44135\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/44136"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=44135"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=44135"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=44135"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}