Oil prices climbed 1% on Wednesday as market participants anticipated a rise in demand from top importer China following Beijing’s latest plans to boost economic growth.
Brent crude futures gained 75 cents, or 1.04%%, to $72.94 a barrel by 1011 GMT, while U.S. West Texas Intermediate crude futures rose 75 cents, or 1.09%, to $69.34.
China said on Monday it would adopt an “appropriately loose” monetary policy in 2025 as Beijing tries to spur its economy with the first easing of its stance in 14 years.
“While past efforts have focused on sectors like electric vehicles and infrastructure, there are expectations that China may shift toward policies to boost consumer spending,” said Li Xing Gan, financial markets strategist consultant to Exness.
“This has sparked optimism in the oil market, with traders hopeful that these initiatives could drive higher oil consumption,” Gan said.
Chinese crude imports grew annually for the first time in seven months in November, up more than 14% from a year earlier.
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