Indications of rising oil demand over the next few months

FGE analysts said they expect oil prices to hover around current levels in the near term, “as activity in stock markets declines during the holiday season and market participants wait until they get a clearer view of global oil balances in 2025.”
Analysts said the changes in supply and demand in December are supportive of their current, so far, optimistic view of the oil market, with demand expected to increase somewhat over the next few months.
They added, “Given the limited opportunities available in the financial market, any disruption in supplies could lead to upward increases.”
Some analysts also pointed to signs of rising demand for oil over the next few months.

Oil prices currently

Oil prices rose slightly over the past few days, compensating for the losses of the previous session thanks to optimistic expectations for the market in the short term linked to the possibility of reducing supplies slightly with weak trade before the two holidays, according to what the Investing platform reported.
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Previous oil forecasts collapse

“The year ends with major agency consensus on the 2025 long-term fuel outlook unraveling,” said Neil Crosby at Sparta Commodities.
Crude oil showed improvement, indicating that the rise would lead to an uptrend that could lead to momentum improving enough to break through the high of $74.42 to the possibility of reaching $76.47 over the coming months as a potential resistance level, FX Empire reported.

China’s demand for oil

Also supporting prices is China’s plan, the world’s largest oil importer, to issue special treasury bonds worth three trillion yuan, equivalent to $411 billion, next year as Beijing intensifies fiscal stimulus to revive the faltering economy.
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This comes as Kelvin Wong, chief market analyst at OANDA, said that this is likely to provide support in the near term for West Texas Intermediate crude.

Oil consumption in America

Markets are also watching the US economy, the world’s largest oil consumer, which released a mixed set of data. While consumer confidence weakened in December, new orders for capital goods manufactured in the US rose in November amid strong demand for machinery.
New home sales also rebounded, indicating that the US economy is on solid footing at the end of the year.

Oil export shifts

India imported smaller amounts of Russian crude oil in November while increasing its purchases of Middle Eastern crude as Russia exported smaller amounts overall, according to the American Oil Price platform.
In the months leading up to November, India continued to boost its crude oil imports from Russia.
Over the past two years, India has become a major buyer of Russian oil while the attractiveness of cheaper crude oil supplies from Russia has made it the largest supplier of oil to India.
But last month, India imported 1.52 million barrels per day of Russian crude oil, down 13% from October.
Meanwhile, imports from the Middle East to India, the world’s third-largest importer of crude oil, jumped 10.8% in November compared to the previous month.