Oil Rises, China Ready to Gas Support in 2026
Crude oil prices strengthened towards the end of the year, supported by hopes of better demand from China and a commodity rally that helped lift market sentiment. Brent has returned above $61 per barrel, while WTI is hovering around $57 per barrel.
This increase comes after China signaled continued support for growth next year. In a statement by the Chinese Ministry of Finance on Sunday, Beijing said it would expand its fiscal spending base in 2026, indicating the government remains ready to stimulate the economy through stimulus and spending.
On the geopolitical front, oil prices continued to rise even as the US stepped up efforts to end the war in Ukraine—which could theoretically pave the way for easing restrictions on Russian oil flows. President Donald Trump said he made “a lot of progress” in talks with the Ukrainian president, while Volodymyr Zelenskiy said the peace framework was “90% agreed upon,” although there were still obstacles, including the future of the Donbas region.
However, on a monthly basis, oil prices remained under pressure. In December, oil prices were on track for their fifth consecutive monthly decline, which would be the longest losing streak in more than two years. Pressure stems from market concerns about a potential global supply surplus, following increased supply from the OPEC+ cartel (including Russia) and increased production from countries outside the group.
China, as the world's largest oil importer, remains key to the direction of demand. Its economy continues to face headwinds from a weakening property sector and external pressures, including trade friction with the US. However, Chinese oil stockpiling is expected to continue next year and could help absorb the surplus. At 7:51 a.m. in Singapore, the February Brent contract rose 0.8% to $61.15 per barrel, while the February WTI contract rose 0.8% to $57.18 per barrel. (asd)
Source: Newsmaker.id
