Oil prices surged to their highest levels since October, fueled by Beijing’s economic stimulus spree and frosty weather boosting global fuel demand.
Brent crude edged up by $0.15 to $76.66 per barrel early Monday, following a Friday close that marked its strongest since Oct. 14. Meanwhile, WTI crude gained $0.22 to $74.18, also hitting a multi-month high.
China is stepping on the fiscal gas, announcing plans to flood 2025 with ultra-long-dated treasury bonds aimed at energizing its slowing economy. The central bank has signaled a rate cut and a reduction in banks’ reserve requirements to further grease the economic gears.
Despite last year’s slump in oil demand, driven by cleaner transport fuel transitions and cooling growth, China’s recent moves may rewrite the script for 2025.
Supply-side tensions are also brewing. Goldman Sachs predicts Iran’s output could dip by 300,000 barrels per day due to looming U.S. sanctions under President Trump’s incoming administration, bringing production down to 3.25 million bpd by Q2. Meanwhile, U.S. oil rig activity slipped slightly, with the count dropping by one to 482
