DTN Oil Update
Oil Futures Rose on Low Stocks, China's GDP Outlook
HOUSTON (DTN) -- Crude oil futures climbed on Friday following recent reports indicating that China's stimulus plan could push demand for crude next year, coupled with expectations of supply tightness after the American Petroleum Institute reported low crude stocks from last week.
Despite thin trading activity, NYMEX WTI for February delivery rose $0.64 and the front-month ICE Brent crude contract climbed $0.62 to $73.88 bbl. Downstream, January RBOB futures edged up $0.0136 to $1.9594 gallon while ULSD futures for January delivery rose $0.0318to $2.2371 gallon.
This week, the World Bank lifted its forecast of gross domestic product GDP for China to 4.9% for 2024, compared to its previous estimate of 4.8%. For next year, the World Bank expects the Chinese economy to grow 4.5%, above the 4.1% previously projected.
Meanwhile, China's National Bureau of Statistics published on Thursday (12/26) the results of its fifth national economic census, with 2023 GDP revised to 129.4 trillion yuan (nearly $18 trillion), an increase of 3.4 trillion yuan from the preliminary calculation.
Reuters also reported that Chinese authorities have agreed toâ?¯ 3 trillion yuan ($411 billion) worth of special treasury bonds in 2025, as part of their commitment to boost China's economy with a more ambitious stimulus plan for next year. See the report here: https://www.reuters.com/…
The upward trend in the oil futures market Friday morning was driven also by expectations of supply tightness after API's data released on Tuesday, Dec. 24, showed a decline of 3.2 million bbl of crude inventories during the week ended Dec. 20, compared to 4.7 million bbl the previous week.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com
