Chinese economy strengthens oil — price of a barrel of Brent
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Crude oil continued its rise at the end of the year. Raw materials are rising for the third day in a row after refinery activity in China, the world's largest oil importer, increased for the third consecutive month.
This is reported by Bloomberg.
How oil prices have changed
Brent futures rose above $74 per barrel in London, reducing their losses for the year to 3.4%.
China's economy is showing signs of recovery after a series of stimulus measures, although the country faces the threat of a new trade war from the incoming Trump administration.
Since October, oil prices have remained in a narrow trading range, putting Brent on track for a second consecutive annual decline - albeit less than last year - while the US benchmark West Texas Intermediate has remained almost unchanged.
Bets on WTI growth hit a four-month high in the penultimate week of 2024 as investors prepare for possible turbulence next year.
Chinese President Xi Jinping said that the country's gross domestic product is expected to grow by about 5% in 2024, which is in line with official targets. At the same time, President-elect Donald Trump is threatening to impose tariffs on China, Canada, and Mexico.
The oil market is also facing a global glut in 2025, complicating the efforts of the Saudi-led OPEC+ group to restore idle production. Some banks predict a further decline in oil prices in the next two years.
On the other hand, a potential escalation of conflicts in the Middle East or a full-scale war in Ukraine could provide short-term support to the oil market. Trump's national security adviser has promised to resume the campaign of "maximum pressure" on Iran, which significantly reduced the country's oil exports during Trump's first term.
As a reminder, oil tankers of Russia's "shadow fleet" have found new locations off the coast of Greece. They secretly supply oil to circumvent sanctions restrictions.
We also wrote that Turkey has started negotiations between the US and Russia. In order to continue paying Gazprombank for Russian natural gas imports, the country is trying to get the US sanctions lifted.
