Brent moves higher on demand growth expectations
The front-month ICE Brent contract has moved $0.93/bbl higher on the day, to trade at $75.85/bbl at 09.00 GMT.
PHOTO: Oil pumpjacks during sunset. Getty Images
Upward pressure:
Brent’s price has increased by around $1/bbl on strong hopes of oil demand growth in 2025, as US President-elect Donald Trump, a vocal advocate for expanding domestic oil production, prepares to take office later this month.
Commercial crude oil inventories in the US declined by 1.2 million bbls to touch 415 million bbls for the week ending 27 December, according to data from the US Energy Information Administration (EIA).
A drop in US crude stocks indicates oil demand growth, which could support Brent's price.
Brent’s price has gained “amid expectations of a surge in energy use,” VANDA Insights’ founder and analyst Vandana Hari said.
Downward pressure:
Brent futures felt some downward pressure due to resurfacing demand growth concerns from China.
China's manufacturing purchasing managers' index (PMI) came in at 50.1% in December, noting a decline from 50.3% achieved in November, data from the National Bureau of Statistics (NBS) showed.
A decline in the PMI reading has raised concerns about demand growth in the country, ultimately weighing down on prices of commodities like oil.
The US December manufacturing data, which will be key for oil price movements, will be out later today.
By Aparupa Mazumder
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