Monday, 06 October 2025
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Oil Prices Rise as U.S. Policy Supports Economic Growth
Monday, 23 December 2024 09:29 WIB | OIL |brent oilOil,

Oil prices edged higher on Monday, along with other risk assets, after U.S. data showed a slowdown in inflation, reviving hopes of further policy easing next year that would support global economic growth and oil demand.

Brent crude futures were up 26 cents, or 0.4%, at $73.20 a barrel by 0141 GMT. U.S. West Texas Intermediate crude was up 31 cents, or 0.5%, at $69.77 a barrel.

"Risk assets, including U.S. equity futures and crude oil, have started the week on a firmer footing," said IG market analyst Tony Sycamore, adding that cooler inflation data helped ease concerns after the Federal Reserve's aggressive interest rate cuts.

"I think the U.S. Senate passing legislation to end the short-term shutdown over the weekend has helped," he said.

Both oil benchmarks fell more than 2% last week on concerns about global economic growth and oil demand after the U.S. central bank signaled caution over further monetary policy easing. Research from Asia's top refiner Sinopec (OTC:SHIIY) showing China's oil consumption peaking in 2027 also weighed on prices.

Concerns about European supplies eased after reports the Druzhba pipeline, which carries Russian and Kazakh oil to Hungary, Slovakia, the Czech Republic and Germany, had restarted after being halted on Thursday due to technical problems at a Russian pumping station.

Shipments resumed on Saturday, according to Belarusian state news agency BelTa. On Sunday, Hungarian Foreign Minister Peter Szijjarto said Druzbha supplies to the country had resumed.

Before the shutdown, the pipeline was carrying 300,000 barrels of crude per day.

Source: Investing.com

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