Crude oil futures climbed on Thursday morning following remarks by Chinese President Xi Jinping expressing optimism for improved economic performance in 2025.
As of 9:52 a.m. on Thursday, March Brent oil futures traded at $74.86, marking a 0.29% increase. Similarly, February crude oil futures on the West Texas Intermediate (WTI) rose by 0.32%, reaching $71.95.
On the Multi Commodity Exchange (MCX), January crude oil futures opened trading at ₹6,183, up 0.19% from the previous close of ₹6,171. February futures also gained 0.28%, trading at ₹6,181 compared to the prior close of ₹6,164.
Xi Jinping Signals Confidence in Economic Recovery
In a televised New Year’s address, President Xi acknowledged ongoing challenges in China’s economic operations, citing external uncertainties and the transition from traditional growth drivers to new ones. Despite these hurdles, he conveyed optimism about overcoming difficulties.
“But we can prevail with our hard work. As always, we grow in the wind and rain, and we get stronger through hard times. We must be confident,” Xi stated, according to a Reuters report.
Xi also estimated that China’s GDP grew by 5% in 2024, underscoring the potential for economic recovery to bolster global demand for commodities, including crude oil. As one of the world’s largest crude oil consumers, China’s economic performance has significant implications for global markets.
Market Data: PMI and Commodity Trends
However, the December 2024 Caixin China General Manufacturing Purchasing Managers’ Index (PMI) fell to 50.5 from November’s 51.5, falling short of the market’s expectation of 51.7.
In other commodities, natural gas futures for January declined by 1.59%, trading at ₹310.20 on MCX compared to the previous close of ₹315.20.
On the National Commodities and Derivatives Exchange (NCDEX), January cottonseed oilcake contracts saw a slight rise of 0.22%, trading at ₹2,714 versus the previous close of ₹2,708. However, April turmeric futures fell by 1.28%, trading at ₹15,168 compared to ₹15,364 in the previous session.
Economic Outlook
Xi’s remarks and China’s projected economic recovery have raised hopes of increased crude oil demand, reflecting positively on the futures market. However, mixed signals from manufacturing data indicate challenges persist. Market participants will likely continue monitoring China’s economic trajectory and its impact on global commodity markets.
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