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Oil up on China's monetary policy shift

Oil costs increased on Wednesday, with market participants anticipating demand to rise in China, the world's largest unrefined importer, after Beijing announced it would unwind financial policy to try to stimulate economic development.

Brent unrefined futures got 24 cents, or 0.3%, to $ 72.43 a barrel by 0730 GMT, while U.S. West Texas Intermediate crude futures increased 24 cents, or 0.4%, to $68.83.

China stated on Monday it would adopt an appropriately loose financial policy in 2025 as Beijing attempts to spur its economy with the very first easing of its stance in 14 years.

Oil costs managed to find a footing lately, as more powerful policy signals from Chinese authorities have as soon as again rekindled expect more powerful stimulus measures to come in 2025, said Yeap Jun Rong, market strategist at IG.

However price gains are still rather constrained, given that market participants still want to see more concrete information beyond the common positive messaging, Yeap said.

Chinese crude imports grew yearly for the first time in 7 months in November, up more than 14% from a year earlier.

China's policy changes, nevertheless, may not be able to counter any impact from the trade steps proposed by President-elect Donald Trump, stated Mukesh Sahdev, head of oil analysis at Rystad Energy.

This (China's policy modifications) can only assist prevent even more downsides at best, he said.

In the U.S., crude oil and fuel stocks rose last week, market sources stated on Tuesday, mentioning American Petroleum Institute figures on Tuesday.

Crude stocks increased by 499,000 barrels in the week ended on Dec. 6, the sources stated on condition of privacy. Gasoline stocks increased by 2.85 million barrels, and extract stocks increased by 2.45 million barrels, they said.

Authorities data on oil stocks from the U.S. Energy Info Administration is due on Wednesday at 10:30 a.m. ET

(source: Reuters)