WionDrive News Desk 
Oil prices climbed on Thursday, marking a cautious start to 2025 trading, as investors returned from holidays and focused on China’s economic recovery and fuel demand growth. The uptick follows Chinese President Xi Jinping’s New Year pledge for more proactive measures to spur growth.
Brent crude futures rose 17 cents, or 0.06%, to USD 74.82 a barrel as of 0547 GMT, building on a 65-cent gain during Tuesday’s final session of 2024. Similarly, U.S. West Texas Intermediate (WTI) crude futures increased by 19 cents, or 0.26%, to USD 71.91 a barrel after closing up 73 cents in the previous session.
Xi’s address signaled China’s intent to implement growth-boosting policies, adding optimism for an economic revival. Supporting this sentiment, the Caixin/S&P Global survey on Thursday showed China’s factory activity grew in December, albeit at a slower pace, reflecting caution over global trade dynamics and U.S. tariffs proposed by President-elect Donald Trump. The data aligns with earlier official figures suggesting sluggish manufacturing growth but hints of recovery in the services and construction sectors.
“Traders are monitoring higher geopolitical risks alongside the potential impact of Trump’s economic policies and proposed tariffs,” noted IG market analyst Tony Sycamore. He pointed to the upcoming U.S. ISM manufacturing data as a key factor likely to influence oil’s next price movement.
Market watchers are also awaiting weekly U.S. crude inventory data from the Energy Information Administration, delayed until Thursday due to the New Year holiday. Analysts predict crude oil and distillate stockpiles fell last week, while gasoline inventories likely rose.
Despite these short-term drivers, oil prices are expected to face headwinds throughout 2025. A Reuters poll suggested Brent might average around USD 70 a barrel, constrained by weak Chinese demand and increasing global supplies, which could offset OPEC+ efforts to stabilise markets.
Meanwhile, Europe adjusted to Russia’s New Year halt of gas exports through Ukraine, relying on alternative sources or, in Hungary’s case, continued supplies via the TurkStream pipeline.
The combination of economic uncertainty, shifting supply chains, and geopolitical tensions leaves oil markets primed for volatility in the months ahead.
