Africa-Press – Eritrea. Oil prices continued their upward trend on Friday, driven by optimism surrounding economic growth in both the US and China.
The international benchmark Brent crude rose by 0.06%, reaching $75.82 per barrel at 11:12 a.m. local time (0812 GMT), up from $75.77 at the close of the previous session.
The US benchmark West Texas Intermediate (WTI) increased by 0.04%, climbing to $72.78 per barrel, compared to its prior session close of $72.75.
The economic outlook in the US, particularly following the inauguration of President-elect Donald Trump on January 20, is expected to influence oil prices, particularly through anticipated increases in demand from the world’s largest crude oil consumer.
Trump’s policies are expected to boost US oil and natural gas consumption, easing concerns among market players about demand and driving oil prices higher.
In addition, the US Federal Reserve is expected to cut interest rates twice during the year, with the first cut anticipated towards the end of the first half of the year. These rate cuts are expected to stimulate economic activity, leading to higher oil demand.
Furthermore, data indicating that US crude oil stocks fell more than expected has reinforced the perception of strengthening demand, contributing to the rise in oil prices.
The US Energy Information Administration (EIA) reported that commercial crude oil stocks in the country decreased by approximately 1.2 million barrels last week, to 415.6 million barrels. Market expectations had been for a decline of about 2.4 million barrels.
Meanwhile, Chinese President Xi Jinping’s pledge to address both internal and external economic challenges as China enters 2025 strengthens expectations for increased economic activity in the world’s largest oil importer, which is likely to support oil demand.
China’s annual National People’s Congress is scheduled to begin in Beijing on March 5. During the congress, the country will finalize its national budget for 2025 and set its economic priorities, including growth targets for gross domestic product.
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