Global oil prices rose on Thursday, supported by strong demand projections from the United States and China. A weaker US dollar further boosted demand in global commodities markets. Brent crude gained 0.2%, reaching $74.85 per barrel, while West Texas Intermediate (WTI) rose 0.3% to $71.76 per barrel.
Market uncertainty persists over the incoming US administration’s policies and the Federal Reserve’s roadmap for the year. Concerns about global recession and inflation continue to weigh on asset prices. Expectations of increased US investments in fossil energy under President-elect Donald Trump’s policies, effective January 20, have supported oil price growth.
The American Petroleum Institute (API) reported a 1.4 million-barrel decline in US crude inventories for the week ending December 27, below market expectations of a 3 million-barrel drawdown. This suggests strengthening US demand. The Energy Information Administration will release official inventory data later on Thursday.
A weakening US dollar index, down 0.15% to 108.135, further supported oil prices by making the commodity cheaper for holders of other currencies.
China’s economic recovery bolstered demand projections, as President Xi Jinping highlighted the country’s rebound in a New Year message. China’s GDP is expected to exceed 130 trillion yuan ($18.08 trillion) in 2025, with grain output surpassing 700 million tons.
