Crude oil prices climbed in early Wednesday trading, reaching $75 per barrel for the first time since early October. An improved outlook for Chinese demand and an unexpected drop in US crude inventories drove the rally. Data for the week ending January 3 showed a sharp decline in US crude oil stocks compared to the previous week, surprising traders who had anticipated a much smaller reduction. This unexpected drawdown created supply-side pressures, bolstering oil prices. Meanwhile, in China, authorities have unveiled new guidelines aimed at fostering economic growth, raising expectations for stronger performance in the world’s second-largest economy and improving the global demand outlook for oil. With support from both supply and demand factors, the current environment suggests there may be room for further gains in oil prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
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