DTN Oil Update
Oil Futures Soared as Crude Stocks Slid Last Week
HOUSTON (DTN) -- Oil futures kept their upward trend from last week in the first trading session of 2025, supported by low crude inventories reported by the Energy Information Administration Thursday, despite a hike in gasoline and diesel stocks due to sluggish demand.
Commercial crude oil inventories in the U.S. dropped by 1.2 million bbl to 415.6 million bbl in the week ended Dec. 27, EIA data released Thursday showed.
In contrast, gasoline stocks rose 7.7 million bbl week-over-week to reach 231.4 million bbl, while distillate fuel stocks soared 6.4 million bbl to 122.9 million bbl last week, according to EIA.
Oil futures prices also rallied reaching multi-month high records after the Labor Department said Thursday morning that Initial Unemployment Claims fell by 9,000 to 211,000 last week, to its lowest level since March, giving signals of steady job security for U.S. workers.
Another economic indicator setting the bullish tone in the oil futures market during the day was the Caixin China General Manufacturing Purchasing Managers' Index PMI released on Thursday, which came in at 50.5 in December, compared with 51.5 in November.
The index showed that the Chinese manufacturing activity expanded at a slower pace in the last month of 2024, despite lower exports affecting overall demand.
On Tuesday, Dec. 31, Chinese President Xi Jinping said that China's economy has rebounded and is on an upward trajectory. Jinping anticipated the national GDP for 2024 is expected to surpass 130 trillion yuan, about $18.08 trillion.
In 2024, oil prices remained under downward pressure due to the lack of demand from China, the main buyer of crude in the world, which continues struggling to reactivate its domestic consumption.
The February NYMEX WTI futures contract climbed by $1.47 to $73.19 bbl, while the front-month ICE Brent futures contract rose by $1.32 to $75.96 bbl. January RBOB futures edged up $0.0435 to $2.0527 gallon, while front-month ULSD rose by $0.0415 to $2.3579 gallon.
Maria Eugenia Garcia can be reached at Maria.Garcia@dtn.com
