Oil prices are increasing, with West Texas Intermediate (WTI) at $71.78 per barrel and Brent crude at $75.53 as of Tuesday morning. Both benchmarks rose more than 1.5% during the day, driven by positive economic news from China and ongoing concerns about conflicts in the Middle East.
On Tuesday, China’s commerce ministry announced a 6% increase in its crude oil import quota for private importers for 2025, raising it to 5.14 million barrels per day (bpd). This change will allow non-state-owned refiners to import 257 million metric tons of oil next year, up from 243 million tons for 2024.
Oil markets have been volatile in recent months. Last week, Brent crude was around $74.69 and $73.21 a month ago, down from nearly $76 at the start of the year. This decline was caused by fears of oversupply and weak demand, especially from China, the world’s largest oil importer.
China’s recent economic stimulus measures have sparked hopes for increased oil demand. However, geopolitical tensions in the Middle East continue to make investors nervous, as any escalation could disrupt global oil supplies, even temporarily.
In the U.S., oil inventories have varied, with reports showing a draw of 1.58 million barrels in crude stockpiles, which has also supported prices. However, U.S. shale producers are being cautious, and spending in the sector has slowed, suggesting that price growth might be limited in the near future.
While prices are recovering for now, the market remains sensitive to global economic factors and potential supply disruptions, leaving future trends uncertain.
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