29.12.202501:26:49UTC+00Oil Gains on China Demand Outlook

On Monday, West Texas Intermediate (WTI) crude oil futures surpassed $57 per barrel, recovering from a decline exceeding 2% in the previous session, buoyed by anticipated increased demand from China. The Chinese government has unveiled plans to significantly enhance fiscal spending by 2026, reflecting ongoing support for economic expansion that is likely to stimulate oil consumption. Additionally, the markets are closely monitoring the United States' heightened diplomatic efforts to mediate an end to the Ukraine conflict, which could eventually lead to the lifting of restrictions on Russian oil exports. President Donald Trump expressed optimism, indicating that discussions with Ukrainian President Volodymyr Zelenskiy are "making significant progress." Zelenskiy noted that a peace framework is almost finalized, with 90% of the terms agreed upon, although critical issues remain unresolved. Nevertheless, oil prices are poised for a decline of over 20% this year, marking the most substantial annual drop since 2020, amidst projections of a global surplus in the coming year due to increased production by both OPEC+ members and non-member countries.