Oil prices ended higher Tuesday, extending gains amid Middle East conflicts. China’s economic measures and increased commodity demand also lifted spirits.
West Texas Intermediate (WTI) for March rose 0.73% to $73.71 per barrel on the New York Mercantile Exchange.
Brent for April climbed 0.77% to $78.59 per barrel on the Intercontinental Exchange.
Capital Economics notes that oil may stay volatile with ongoing Middle East strife. The firm believes global easing monetary policies could boost oil demand.
Yet, the outlook for European and Asian natural gas prices is bleak, with expectations of a drop due to oversupply and large stocks.
China’s stimulus aims to support its housing market and spur industrial metal demand.
Market regulators in China are pushing for share buybacks and dividends to enhance asset values. The Central Huijin Investment Plan plans to increase stock purchases.
The Vice Minister of Commerce, Sheng Qiuping, aims to boost 2024’s domestic consumption, especially in cars and appliances.
The U.S. Department of Energy now sees Brent at $82.42 by year-end, up from $82. This revision matters as oil’s pricing influences global economic dynamics.
By 2025, Brent is projected to ease to $79.48, facing more pressure from rising stock levels.
In short, this trend shows how inventory growth can temper oil market rallies.