DTN Oil Update
Oil Futures Up on China's Stimulus Plan, Russia-Ukraine Attack
HOUSTON (DTN) -- Crude oil markets rose Thursday on news of additional fiscal measures to boost China's stimulus plan and due to escalating tensions between Russia and Ukraine during the Christmas holiday break.
Front-month NYMEX WTI futures contract edged up $0.38 to $70.48 barrel (bbl) and ICE Brent crude contract for February delivery rose $0.37 to $73.95 bbl, despite sluggish trading activity driven by the year-end holiday.â?¯Downstream, January RBOB futures edged up by $0.0100 to $1.9689 gallon while ULSD futures for January delivery fell $0.0213 to $2.2428 gallon.
Confirmation that China is willing to increase government spending in 2025 contributed to the bullish sentiment in the crude futures market this morning. Chinese authorities have agreed toâ?¯issueâ?¯3 trillion yuan ($411 billion) worth of special treasury bonds next year, according to an exclusive report from Reuters published on Tuesday, Dec. 24. Two weeks ago, top leaders of China's Communist Party committed to boost the country's economy by implementing a loose monetary policy for the first time in over a decade.
Separately, Russia launched a missile and drone attack on Ukraine on Christmas Day, targeting fuel and energy infrastructure, which caused the Biden Administration to order an increasing supply of weapons for the Ukrainian government.
Domestically, the U.S. Labor Department reported this morning that in the week ended Dec. 21, the advance figure for seasonally adjusted initial jobless claims was 219,000, 1,000 down from the previous week's unrevised level of 220,000.
The figure was below the median consensus of economists and analysts of 225,000. "The 4-week moving average was 226,500, an increase of 1,000 from the previous week's unrevised average of 225,500," the data show.
Separately, the Energy Information Administration reported that its Weekly Petroleum Status Report will be delayed by two days this week due to the Christmas holiday.
The WPSR will now be released Friday, Dec. 27, at 1:00 p.m. EST, according to EIA's website. Additionally, the Weekly Natural Gas Storage will be delayed with the data now scheduled for release on Friday morning at 10:30 a.m. EST.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com
