Crude oil prices surged on the worldwide market, boosted by higher demand forecasts from China following indications of greater economic activity in Beijing. This event was driven further by concerns about the plans of US President-elect Donald Trump, who is scheduled to take office in January 2025.
The worldwide standard, Brent crude, rose by 0.3% to $80.62 per barrel. Meanwhile, the US benchmark, West Texas Intermediate (WTI), climbed 0.4% to $78.13 per barrel, up from the previous session’s finish of $77.77.
China’s economic data released Friday revealed a 5% GDP growth last year, meeting its annual target. Industrial production also surged by 6.2% year on year in December, exceeding expectations.
In the US, uncertainty around Trump’s cabinet nominations continues to influence oil prices. Scott Bessent, nominated as Secretary of the Treasury, announced plans to revitalize the economy through pro-growth regulatory reforms, tax reductions, and an emphasis on harnessing domestic energy resources.
Federal Reserve Governor Christopher Waller indicated that interest rate cuts could be expected in the first half of the year if inflation trends downward as anticipated. Waller suggested the Fed might reduce rates three to four times this year, depending on favorable economic data, though fewer cuts are possible if inflation trends falter.
Optimism surrounding economic growth and increased oil demand in the US, the world’s largest oil consumer, continues to support prices.
In its January report, the World Bank projected global economic growth of 2.7% for both 2025 and 2026, mirroring last year’s performance. Falling inflation and interest rates are expected to boost economic activity, further driving global oil demand.
