Crude Oil Prices Rise Slightly Amid Optimism for Strong Chinese Demand

Crude oil prices experienced a slight increase during Monday's trading, driven by optimism regarding the outlook for Chinese demand, following the release of positive economic data from China. Markets are also closely watching the upcoming OPEC+ meeting scheduled for later this week.

Oil Prices Performance in the Markets

U.S. crude oil contracts rose by 0.76%, with the price of a barrel reaching $68.63, while Brent crude contracts increased by 0.69%, recording $72.53 per barrel. This rise reflects growing optimism about the future of Chinese oil demand, helping to stabilize the oil market.

Reasons Behind the Increase in Crude Oil Prices

Crude oil prices benefited from strong market sentiment regarding Chinese demand, after economic data showed significant growth in industrial activity within China. A private sector survey released on Monday revealed that industrial activity in China grew at its fastest pace in five months during November, supported by increased new orders, including those from abroad, which boosted production levels.

Furthermore, the Caixin Global Manufacturing Purchasing Managers' Index (PMI) rose to 51.5 in November, up from 50.3 in October. This indicates the positive effects of China's recent economic stimulus measures. These developments coincided with heightened trade tensions, especially from U.S. President Donald Trump, which also impacted market sentiment.

In addition, oil markets are awaiting the upcoming OPEC+ meeting later this week, where it is expected that planned production increases will be postponed until after the first quarter of 2025. This move aims to maintain balance in the oil markets, further supporting price stability.

Previous Week's Price Decline

It's worth noting that oil prices had declined by over 3% in the previous week, primarily due to diminishing concerns about supply disruptions caused by the Israel-Hezbollah conflict. Additionally, forecasts predicting higher oil supply in 2025, despite expectations for OPEC+ to extend its production cuts, also contributed to the decline.

Other Energy Contracts

In addition to crude oil, heating oil contracts rose by 1.15%, reaching $2.2176 per gallon, while gasoline contracts increased by 1.11%, recording $1.9198 per gallon. On the other hand, natural gas contracts fell by 5.83%, settling at $3.167 per million British thermal units.

Read also:

Report: OPEC+ Discusses Postponing Oil Production Increase to the First Quarter

Libyan Oil Production Records Historical Leap Exceeding 1.38 Million Barrels Per Day