Slight Rise in Oil Prices Amid Expectations of Improved Chinese Demand

SadaNews - Oil prices have risen slightly against the backdrop of expectations for improved Chinese demand, amid the failure of U.S.-led talks to end the war in Ukraine to achieve a breakthrough.

Brent crude rose above $61 a barrel, after declining 2.6% on Friday, while West Texas Intermediate crude was traded near $57.

China has pledged to expand its financial spending base in 2026, according to a statement from the Ministry of Finance on Sunday, signaling continued government support to drive growth.

As the United States intensifies efforts to end the war in Ukraine, points of contention remain, highlighting the difficulty of concluding the conflict.

U.S. President Donald Trump stated that he has made "significant progress" in talks held on Sunday with his Ukrainian counterpart Volodymyr Zelensky at the Mar-a-Lago resort. The U.S. president added that he aims to hold another meeting with Zelensky and European leaders in January.

Oil Heads Towards Fifth Monthly Decline

Oil is still on track to record its fifth consecutive monthly decline in December, which would mark the longest losing streak in over two years.

Prices have faced downward pressure due to concerns about a global oversupply, following increases in supplies from the OPEC+ alliance, which includes Russia, alongside countries outside the group.

China remains the largest importer of crude oil and its economy has faced headwinds amid a prolonged slump in the real estate sector and increasing external pressures, including trade frictions with the United States.

Meanwhile, Beijing is expected to continue ramping up crude oil storage operations over the next year, helping to absorb the surplus.