WTI crude oil futures saw a modest increase, marking the third consecutive day of narrow fluctuations. The market remains above key technical support levels, driven by optimism surrounding Chinese economic stimulus measures and a decline in U.S. oil inventories. WTI prices are expected to rise by 1% this week due to these factors.
Reports indicate a potential decrease in U.S. crude oil inventories by 1.9 million barrels, tightening supply and boosting prices. Cold weather in the U.S. also supports increased oil demand. However, traders await the official U.S. Energy Information Administration (EIA) inventory report for further direction.
China's economic stimulus measures continue to bolster market sentiment, with the World Bank adjusting its growth forecasts for China in 2024 and 2025. Plans for issuing special government bonds aim to stimulate economic recovery, enhancing China's oil import prospects.
The strong U.S. dollar limits further oil price gains by making it more expensive for international buyers, thus curbing speculative buying.
