Oil Prices Rise on China Demand Optimism
Oil prices rose as investors started the new year on a positive note. Brent and WTI crude rose 0.5% to $74.98 a barrel and $72.05 a barrel, respectively.
Optimism about oil demand was boosted by Chinese leader Xi Jinping’s annual New Year’s speech on Tuesday, market watchers said. Xi said the country’s economy was on an “upward trajectory,” though he also noted “challenging uncertainties in the external environment” in 2025.
Official manufacturing purchasing managers’ index data released earlier this week showed factory activity in China expanded slightly for a third straight month. That further boosted demand expectations from China, the world’s second-largest oil consumer after the U.S.
Source: Bloomberg
