WASHINGTON (dpa-AFX) - Oil futures settled higher on Tuesday amid hopes demand from China will increase thanks to the recent stimulus announcement by the Chinese government.
Oil prices were also supported by slightly easing concerns about the situation in Syria, where the rebels are reportedly working to form a government and restore order in the country.
West Texas Intermediate Crude oil futures for January closed up $0.22 or about 0.32% at $68.59 a barrel.
Brent crude futures settled at $72.19 a barrel, gaining 5 cents or 0.07%.
The Energy Information Administration (EIA) today lowered its forecast for 2025 Brent oil prices as it continues to see oil production rising above demand next year.
In its monthly Short-Term Energy Outlook, the EIA said it expects Brent, the global oil benchmark, to average US$69.12 per barrel next year, down from its prior-month forecast of US$71.60.
The drop comes as the agency trimmed its forecast for 2025 demand to 104.3-million barrels per day from 104.4 million, while lowering its production forecast to 104.2-million bpd from 104.7-million bpd, as Chinese demand, is seen rising next year by only 200,000 bpd, to 16.7-million bpd, as its economy struggles.
Markets now await weekly oil reports from the American Petroleum Institute (API) and EIA, and data on U.S. consumer price inflation.
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