WTI Oil rises above $72 on US stock decline, China recovery hopes

WTI crude oil futures climbed above $72 per barrel on Thursday, marking the first session after the New Year holiday, following an industry report revealing a decline in US crude inventories.

WTI Oil rises above $72 on US stock decline, China recovery hopes

API data showed a 1.4-million-barrel drop in US oil stocks for the week ending December 27th, which would mark the third consecutive weekly draw if confirmed by official data. Investors are also focused on China's economic recovery and increasing fuel demand after President Xi Jinping's commitment to implementing proactive growth policies. This follows an official survey suggesting that policy stimulus is beginning to impact some sectors in the world’s largest crude importer.

Market cautious on Oil oversupply and Trump’s policy impact

However, market caution remains regarding the potential for oversupply this year and the uncertainty surrounding the impact of Donald Trump’s second presidential term on oil policy.