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Oil Prices Rally as US Crude Reserves Shrink and China Fuels Demand

Eugene Park Views  

美 원유재고 감소·中 부양책에 WTI 75달러 돌파
A view of an oil pump in Long Beach, California, USA. AFP-Yonhap News

U.S. crude oil inventories fell more than expected, pushing West Texas Intermediate (WTI) oil prices above $75 per barrel.

According to Bloomberg, on the 24th (local time), WTI futures prices closed at $75.09 per barrel, up 0.97% from the previous trading day. It rose to 2% during the session, recording the highest price this year. WTI also maintained the $75 line on the 25th, and Bloomberg evaluated that the “WTI $75 per barrel line is a major psychological resistance line.” Concurrently, Brent oil prices closed at $80.04, up 0.62% on the 24th.

The surge in oil prices was driven by a notable decrease in U.S. crude oil inventories, which decreased by 9.23 million barrels compared to the previous week. Additionally, expectations of heightened oil demand, fueled by large-scale stimulus from the Chinese government, have contributed to the rise in oil prices.

Craig Elam of data analysis company Oanda said, “Geopolitical risks (such as the Red Sea situation) are causing some alarm, but they are not particularly reflected in the price at this stage.”

Eugene Park
content@www.kangnamtimes.com

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