WTI continues to rise toward $69.00 due to improved demand outlook in China
Trending Articles- Gold Price Trend Forecast: Why Did Gold Prices Fall After US CPI Cooled? Fed Chair Speech and Iran Situation Become Obstacles
- Gold Price Trend Forecast: June CPI Plus Fed Chair Congressional Testimony, Can Gold Price Hold Above $4,000?
- TradingKey Daily Market Brief: Gold Falls Below $4,000, TSMC’s Strong Earnings Fail to Stop AI Trade Cooling, Chip Stocks Sold Off
- Gold Price Forecast: Cooling Inflation Fails to Offset Fed Hawkish Pressure, Gold Price May Fall to $3,500
- Tesla Q2 Earnings Preview: Record Deliveries Fail to Hide Profit Pressure, Can Musk Rely on AI and Autonomous Driving to Unlock New Growth Space?
- Today’s Market Recap: Unexpected PPI Drop Boosts Markets, Apple Hits All-Time High, AI Hardware Stocks Remain Under Pressure, Micron, SanDisk Slump
●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.
