LONDON: Oil prices held steady on Friday, remaining poised for weekly gains after closing the previous session at their highest in more than two months, underpinned by colder European and US weather and additional economic stimulus flagged by China.
Brent crude futures were up 22 cents at $76.15 a barrel by 5:37 p.m. Saudi time after settling on Thursday at the highest level since Oct. 25. US West Texas Intermediate crude gained 44 cents, or 0.6 percent, to $73.57.
Brent was on track for a 2.7 percent weekly gain while WTI was set for a 4.2 percent increase.
Signs of Chinese economic fragility heightened expectations of policy measures to boost growth in the world’s top oil importer.
“As China’s economic trajectory is poised to play a pivotal role in 2025, hopes are pinned on government stimulus measures to drive increased consumption and bolster oil demand growth in the months ahead,” said StoneX analyst Alex Hodes.
China announced a couple of new measures to boost growth this week with a surprise move to raise wages for government workers and the announcement of a sharp increase in funding from ultra-long treasury bonds. The additional funding is to be used to spur business investment and consumer-boosting initiatives.
Oil is likely to have gained some price support from expected increased demand for heating oil after forecasts for colder weather in some regions.
“Oil demand is likely benefiting from cold temperatures across Europe and the US,” said UBS analyst Giovanni Staunovo.
Also supporting prices this week, US crude stockpiles dropped by 1.2 million barrels to 415.6 million barrels, EIA data showed.
Meanwhile, US gasoline and distillate inventories jumped as refineries ramped up output, though fuel demand hit a two-year low.
