Crude Oil Prices Driven by Multiple Positives
On December 26th European trading session, crude oil futures prices continued to rise, climbing to the key support level of $69.11. Technically, oil prices continued to increase after breaking through the 50-day moving average. At the same time, market expectations for China to introduce economic stimulus policies further enhanced investor optimism.
It is rumored that the Chinese government plans to issue 3 trillion yuan (approximately 411 billion USD) of special government bonds next year to revive economic growth. As the world's largest crude oil importer, China's economic activity recovery significantly impacts global energy demand. Investors anticipate that the implementation of China's economic stimulus policies will noticeably increase fossil fuel consumption, providing additional support for oil prices.
Decrease in U.S. Inventories Boosts Bullish Sentiment
The reduction in U.S. inventory data further supports the market's bullish sentiment. The American Petroleum Institute (API) reported a decrease of 3.2 million barrels in crude oil inventory last week. The market is awaiting official data from the U.S. Energy Information Administration (EIA), with analysts expecting a reduction of 1.9 million barrels. If the EIA report confirms or exceeds expectations, it will provide stronger support for oil prices.
Moreover, gasoline and distillate inventories are also expected to decline, which further indicates a trend of demand recovery. Changes in inventory data have become one of the key indicators traders focus on.
Outlook: Bullish Trend Likely to Continue
Overall, the bullish trend in the crude oil market is likely to persist. China's economic stimulus measures provide a long-term demand growth expectation, while the decline in U.S. crude inventories offers direct support for short-term supply-demand tension.
Traders should pay attention to the specific data from the EIA report, as a larger-than-expected reduction in inventories may further spur oil prices upward. In the short term, oil price movements will be influenced by a combination of key technical indicators and fundamental factors.
Market experts indicate that despite some uncertainties, overall market sentiment remains optimistic. Oil prices are expected to continue being propelled upwards by both technical and fundamental positives, maintaining an oscillating upward trend in the foreseeable future.
As signs of global demand recovery gradually emerge, the rise in oil prices may inject new vitality into the energy market, with China's stimulus policies and inventory dynamics remaining key focal points for investors.
