Oil Rises Amidst Demand, Supply Imbalance
Oil prices rose in the global commodities market on Monday amidst demand and supply imbalance. The market has seen significant fluctuation in top crude oil buyers, China and the United States due to weak economic data.
Growth prospect in the top countries that consumer significant amount of oil remain uncertain on the back of tariff threats by incoming U.S president, Donald Trump.
Oil prices edged higher as the market awaited further clues on the demand outlook from the US and China, ahead of the year-end. Meanwhile, Middle East tensions continue to affects supply outlook negatively.
The international benchmark Brent crude rose by 0.29% to $73.61 per barrel, up from $73.40 at the close of the previous session. The US benchmark West Texas Intermediate (WTI) increased by 0.34% to $70.33 per barrel, compared to its prior session close of $70.09.
Latest data from the Energy Information Administration (EIA) revealed a larger-than-expected decline in crude oil inventories in the US, signaling strong demand in support of higher prices.
US commercial crude oil inventories decreased by around 4.2 million barrels during the week ending Dec. 20, against the market prediction of a 700,000 barrels draw. Demand optimism in China supported prices, despite a holiday-shortened week that led to thin market volumes.
The World Bank raised its forecast for China’s economic growth in 2024 and 2025, while the country also upgraded its estimate for the size of its economy. However, uncertainties around both supply and demand continue as US President-elect Donald Trump prepares to take office on Jan. 20. #Oil Rises Amidst Demand, Supply Imbalance
