# Oil rises on expanding Chinese factory activity, but set to end year lower
Published: 2024-12-31
Category: Headlines
Category URL: https://companiesdigest.com/category/headlines/
Meta Title: Oil prices rise as China's manufacturing activity expands in December
Meta Description: Brent crude futures rose 0.7% to $74.46 a barrel, supported by China's economic stimulus. U.S. crude also gained amid declining stockpiles.
URL: https://companiesdigest.com/oil-rises-on-expanding-chinese-factory-activity-but-set-to-end-year-lower/

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SINGAPORE (Reuters) – Oil prices rose in early trade on Tuesday after data showed China’s manufacturing activity expanded in December, but for a second consecutive year oil was on track to end lower due to demand concerns in top consuming countries.

Brent crude futures rose 47 cents, or 0.7%, to $74.46 a barrel as of 0130 GMT. U.S. West Texas Intermediate crude gained 49 cents, also 0.7%, to $71.48 a barrel. For the year, Brent declined 3.2%, while WTI was down 0.6%.

China’s manufacturing activity expanded for a third straight month in December but at a slower pace, an official factory survey showed on Tuesday, suggesting a blitz of fresh stimulus is helping to support the world’s second-largest economy.

Chinese authorities have also agreed to issue a record 3 trillion yuan ($411 billion) in special treasury bonds in 2025 to revive economic growth, Reuters reported last week.

While a weak longer-term demand outlook has weighed on prices, they could find short-term support from declining U.S. crude stockpiles, which are expected to have fallen by about 3 million barrels last week.

Both Brent and WTI were buoyed by a larger-than-expected drawdown from U.S. crude inventories in the week ended Dec. 20 as refiners ramped up activity and the holiday season boosted fuel demand. \[EIA/S\]

(Reporting by Sudarshan Varadhan; Editing by Sonali Paul)


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