Oil prices rose on Friday, with Brent futures at $74.17 a barrel and WTI at $70.60, driven by a larger-than-expected 4.2M barrel drop in U.S. crude inventories, signaling tightening supply. The drawdown, reported by the U.S. Energy Information Administration, contrasted sharply with the anticipated 700,000-barrel decline. While gasoline stocks increased by 1.6M barrels, distillates like diesel fell by 1.7M barrels. Market activity remained subdued due to holiday season trading.
Hopes for China’s economic recovery provided further support, fueled by plans for a record 3 trillion yuan ($411 billion) in special treasury bonds and upwardly revised economic growth forecasts by the World Bank. However, challenges like weak consumer confidence and potential oversupply from non-OPEC producers temper optimism for global oil demand.
