Oil prices and gas rose on Thursday, January 25, after data showed that crude inventories in the United States fell more than expected last week, while the cut in China’s bank reserve ratio reinforced hopes for more stimulus and economic recovery.
Brent crude futures gained 25 cents, 0.3 percent, to $80.29 a barrel at 04:30 GMT, while U.S. West Texas Intermediate rose 31 cents, or 0.4 percent, to $75.40 a barrel.
“The significant drop in US oil inventories and expectations of China’s economic recovery, along with further stimulus measures, supported oil prices,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
Geopolitical tensions in the Middle East were also in the spotlight, but price gains were limited as risk premiums have already been built into prices, according to Priyanka Sachdeva, senior market analyst at brokerage Phillip Nova.
“Oil investors need a concrete catalyst to boost prices further, which honestly seems to be lacking for now,” Sachdeva said.
The US military carried out more strikes in Yemen in the early hours of Wednesday, January 24, destroying two Houthi anti-ship missiles that were aimed at the Red Sea and were preparing to be launched, according to the US military.
Oil prices were also supported by hopes for China’s economic recovery, with the Chinese central bank announcing a deep cut in bank reserves to inject around US$140 billion into the banking system and support the slumping economy and stock markets.
China also expanded the uses for commercial real estate loans by banks, as part of its efforts to ease a liquidity crunch faced by struggling real estate companies.
