Crude oil prices rose slightly on Friday as stronger-than-expected demand from China supported markets, though concerns over global oversupply continue to weigh on sentiment. The rally was driven by data suggesting a rebound in China's industrial activity and fuel consumption.
- Brent crude rose to $84.30/bbl, WTI to $81.20/bbl on Friday
- China’s refined product exports hit 5.2 million barrels per day in November
- U.S. crude inventories rose by 4.2 million barrels last week to 452 million barrels
- OPEC+ production cuts remain at 2.2 million barrels per day
- China’s fuel demand must sustain above 13 million barrels per day to ease surplus risks
- Major energy firms including Shell, ExxonMobil, and Sinopec saw minor share gains
Global crude prices posted modest gains Friday, with Brent crude climbing 0.7% to $84.30 per barrel and West Texas Intermediate (WTI) rising 0.6% to $81.20, as demand signals from China bolstered investor confidence. The uptick follows a report indicating that China’s refined product exports reached 5.2 million barrels per day in November—up 12% from October and the highest level since June 2023—driven by increased exports of gasoline and diesel. This reflects a rebound in domestic refining activity and stronger regional demand in Southeast Asia and South Asia. Despite the positive momentum, supply concerns remain prominent. Global crude inventories in major consuming regions, including the United States and Europe, have been rising steadily over the past three months. According to recent trade data, U.S. crude stockpiles increased by 4.2 million barrels last week, bringing total levels to 452 million barrels—the highest since March 2023. Meanwhile, OPEC+ continues to maintain production cuts equivalent to 2.2 million barrels per day, though market participants are closely monitoring whether further adjustments will be needed. The divergence between strong Asian demand and persistent global inventory growth has created a volatile trading environment. Traders are gauging whether China’s recovery is sustainable or merely a cyclical rebound. Analysts note that if Chinese fuel consumption remains above 13 million barrels per day through Q1 2026, it could significantly reduce the risk of a surplus. However, any slowdown in manufacturing output or weakening export trends could quickly reverse the current sentiment. Energy firms with significant exposure to Asian markets, including Shell (LSE: SHEL), ExxonMobil (NYSE: XOM), and Sinopec (NYSE: SNP), saw their shares rise modestly in early trading. Meanwhile, oil service providers such as Schlumberger (NYSE: SLB) and Halliburton (NYSE: HAL) experienced muted reactions, reflecting cautious optimism amid elevated geopolitical risks in the Middle East and uncertain demand outlook.