(Reuters) – Oil prices were little changed on Friday but were set for a weekly gain on optimism that economic stimulus efforts will boost China’s recovery, but a stronger dollar capped gains.
Futures were down 2 cents at $73.24 a barrel by 05:35 GMT. U.S. West Texas Intermediate crude was at $69.61, down 1 cent from Thursday’s close. However, on a weekly basis Brent rose by 0.4% and WTI by 0.2%.
The World Bank on Thursday raised its forecast for China’s economic growth for 2024 and 2025, but warned that subdued household and business confidence, along with headwinds in the property sector, would continue to weigh on next year.
China, the world’s biggest oil importer, revised upward its 2023 gross domestic product estimate by 2.7%, but also said the change would have little impact on growth this year.
Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) worth of special government bonds next year, Reuters reported this week, citing sources, as Beijing ramps up fiscal stimulus to revive its ailing economy.
However, a stronger US dollar weighed on oil prices and limited growth. The dollar rose about 7% in the quarter and remained at a near two-year high against major rivals after the Federal Reserve signaled a slower rate cut in 2025.
A stronger dollar makes oil more expensive for holders of other currencies.
The latest weekly report on U.S. inventories from industry group the American Petroleum Institute showed crude inventories fell by 3.2 million barrels last week, market sources said on Tuesday.
Traders will wait to see if the US Energy Information Administration’s official inventory report confirms the decline. EIA data is due out on Friday at 1:00 PM EST (1800 GMT), later than usual due to the Christmas holiday.
Analysts in a Reuters poll expected crude oil inventories to fall by about 1.9 million barrels in the week to Dec. 20, while gasoline and distillate inventories were forecast to fall by 1.1 million barrels and 0.3 million barrels, respectively.
