Oil rises from two-month highs on optimism over policy support for growth

Oil prices continue to rise, reaching their highest levels in over two months due to anticipated government policies aimed at reviving economic growth worldwide. Lower interest rates and China’s proactive measures are expected to stimulate fuel demand. Additionally, a potential cold snap in the U.S. and Europe may increase diesel demand.

Oil rises from two-month highs on optimism over policy support for growth
Oil prices extended their gains on Friday after closing at their highest in more than two months in the previous session on hopes governments across the world may increase policy support to revive economic growth that would lift fuel demand . Brent crude futures rose 16 cents, or 0.2%, to $76.09 a barrel by 0132 GMT after settling at its highest since Oct. 25 on Thursday.

U.S. West Texas Intermediate crude was at $73.32 a barrel, up 19 cents, or 0.3%, with Thursday's close its highest since Oct. 14. Both contracts are on track for their second weekly increase with investors back from holidays, improving trade liquidity.

Factory activity in Asia, Europe and the U.S. ended 2024 on a soft note as expectations for the new year soured amid growing trade risks from a second Donald Trump presidency and China's fragile economic recovery.

"The December PMIs for Asia were a mixed bag, but we continue to expect manufacturing activity and GDP growth in the region to remain subdued in the near term," Capital Economics analysts said in a note, referring to purchasing managers' indexes data published on Thursday.

Stock Trading Masterclass on Value Investing and Company Valuation View Program Stock Trading Market 104: Options Trading: Kickstart Your F&O Adventure By - Saketh R, Founder- QuickAlpha, Full Time Options Trader View Program Stock Trading Technical Analysis for Everyone - Technical Analysis Course By - Abhijit Paul, Technical Research Head, Fund Manager- ICICI Securities View Program Stock Trading Stock Markets Made Easy By - elearnmarkets, Financial Education by StockEdge View Program Stock Trading Renko Chart Patterns Made Easy By - Kaushik Akiwatkar, Derivative Trader and Investor View Program Stock Trading Market 101: An Insight into Trendlines and Momentum By - Rohit Srivastava, Founder- Indiacharts.

com View Program Stock Trading Markets 102: Mastering Sentiment Indicators for Swing and Positional Trading By - Rohit Srivastava, Founder- Indiacharts.

com View Program Stock Trading Dow Theory Made Easy By - Vishal Mehta, Independent Systematic Trader View Program Stock Trading Market 103: Mastering Trends with RMI and Techno-Funda Insights By - Rohit Srivastava, Founder- Indiacharts.

com View Program Stock Trading ROC Made Easy: Master Course for ROC Stock Indicator By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Heikin Ashi Trading Tactics: Master the Art of Trading By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program Stock Trading RSI Made Easy: RSI Trading Course By - Souradeep Dey, Equity and Commodity Trader, Trainer View Program Stock Trading Introduction to Technical Analysis & Candlestick Theory By - Dinesh Nagpal, Full Time Trader, Ichimoku & Trading Psychology Expert View Program "With growth set to struggle and inflation below target in most countries, we think central banks in Asia will continue to loosen policy.

" Lower interest rates should spur more economic growth which would lead to higher fuel consumption.

Investors are eyeing further interest rate cuts by the U.S. Federal Reserve this year to support its economy, while China President Xi Jinping has pledged more proactive policies to promote growth.

"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," StoneX analyst Alex Hodes said.

In the U.S., the world's biggest oil consumer, gasoline and distillate inventories jumped last week as refineries ramped up output but fuel demand hit a two-year low. [EIA/S] Crude stockpiles fell less than expected, down 1.2 million barrels to 415.6 million barrels last week compared with analysts' expectations for a 2.8-million-barrel draw.

Traders are also paying close attention to recent weather forecasts as expectations of a cold snap in the U.S. and Europe over the coming weeks could boost demand for diesel as a substitute to natural gas for heating.

(You can now subscribe to our ETMarkets WhatsApp channel )

Related Fuel News

More updates you might want to read next.

Tata Motors Plans Rs 40,000 Crore FY31 Investment: Why Its EV And CNG Push Matters For Buyers

Tata Motors Passenger Vehicles is planning to invest Rs 37,500-40,000 crore over the next five years, up to FY31, as it targets a bigger production base, more models and annual sales of over 1.2 million units. ET also reported that the company wants revenue to cross Rs 6 lakh crore by FY31 with a 10 percent EBIT margin, with EVs and CNG models doing much of the heavy lifting. For buyers, the story is less about balance-sheet ambition and more about what kind of cars Tata wants to sell next.

Petrol, Diesel Rates May Ease As Cheaper Crude Arrives: What Hardeep Puri’s Signal Means For India

Union Petroleum Minister Hardeep Singh Puri says petrol and diesel rates in India may ease once recently bought cheaper crude reaches refiners, after global oil prices cooled and Brent slipped below $80 a barrel. The signal matters because India imports most of its crude, so any sustained fall can filter through to motorists, freight users and inflation. But the relief is unlikely to be immediate, because fuel prices depend on inventory cycles, logistics and how quickly oil companies pass on lower input costs.

Petrol, Diesel Rates May Ease As Cheaper Crude Arrives: What Hardeep Puri’s Signal Means For India

Union Petroleum Minister Hardeep Singh Puri says petrol and diesel rates in India may ease once recently bought cheaper crude reaches refiners, after global oil prices cooled and Brent slipped below $80 a barrel. The signal matters because India imports most of its crude, so any sustained fall can filter through to motorists, freight users and inflation. But the relief is unlikely to be immediate, because fuel prices depend on inventory cycles, logistics and how quickly oil companies pass on lower input costs.

Toyota Ebella Deliveries Begin In India: Why The ₹23.6 Lakh E3 Matters For EV Buyers

Toyota has started deliveries of the Urban Cruiser Ebella electric SUV in India, turning the model from launch headline into a real-world ownership story. The top-spec E3 is priced at Rs 23.60 lakh ex-showroom, while Toyota is also offering a Battery-as-a-Service route that lowers the entry price to Rs 15.25 lakh and charges Rs 4.99 per km for battery use. For EV buyers, this is the point where Toyota’s first mass-market electric SUV begins proving itself on the road.