WTI continues to rise toward $69.00 due to improved demand outlook in China
Trending Articles- US-Iran Agreement Brought Forward: Pakistani Prime Minister Confirms US-Iran Agreement Has Taken Effect Immediately, Strait of Hormuz Will Reopen Immediately
- WTI hovers around $80.00 as traders await developments on US-Iran peace talks
- Gold rises to weekly high as US, Iran reach peace deal
- Bitcoin network activity hits new high despite stalled prices — CryptoQuant
- Gold Price Forecast: Hawkish Fed Triggers Gold Plunge, Can US-Iran Agreement Push Gold Past $4,360?
- WTI Price Forecast: Trades above $75.50 on Iran uncertainty; 200-day SMA holds the key
●WTI price appreciates as China announced plans to adopt proactive fiscal stimulus measures next year.
●API Weekly Crude Oil Stock rose by 0.499 million barrels against an expected decrease of 1.30 million barrels.
●Traders are anticipating the upcoming OPEC Monthly Oil Market Report to evaluate crude Oil market trends for the year ahead.
West Texas Intermediate (WTI) Oil price extends its gains for the third successive session, trading around $68.80 per barrel during Asian hours on Wednesday. Crude Oil prices gained ground as the demand outlook improved following the Politburo’s announcement that China to adopt a “moderately loose” monetary policy and a “more proactive” approach to fiscal stimulus next year. This would mark a departure from the more cautious tone of the past decade. potentially boosting energy demand from the world’s largest crude importer.
Additionally, China's crude Oil imports increased in November for the first time in seven months, rising over 14% year-on-year. On the supply side, the American Petroleum Institute (API) weekly report showed that US crude Oil stockpiles rose by 0.499 million barrels for the week ending December 6, compared to a 1.232 million-barrel increase in the previous week. Market expectations had anticipated a decrease of 1.30 million barrels.
Moreover, escalating geopolitical tensions in the Middle East could lend support to WTI prices. Over the weekend, turbulence intensified as Syrian President Bashar al-Assad and his family fled to Moscow, where they were granted political asylum, marking the end of a 50-year dictatorship.
Meanwhile, investors are closely monitoring key US inflation data, which could shape the Federal Reserve's interest rate outlook. The US CPI inflation is estimated to rise to 2.7% YoY in November from 2.6% in October. Meanwhile, the core CPI, excluding Food & Energy, is expected to remain consistent at a 3.3% increase YoY. Traders are now pricing in nearly an 85.8% chance of Fed rate reductions by 25 basis points, according to the CME FedWatch Tool.
Traders are expected to closely monitor the upcoming OPEC Monthly Oil Market Report (MOMR), which addresses key issues impacting the global Oil market and offers a forecast for crude Oil market trends in the year ahead.
Read more
* The content presented above, whether from a third party or not, is considered as general advice only. This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.
