Oil Prices Set to Start the Year With a Weekly Gain

Crude oil prices were set to end the first week of the new year with gains, following a shift in sentiment among traders, based on the latest economic indicator readings and expectations of growth-stimulating government policies across key markets.

Brent crude was trading at over $76 per barrel earlier in the day, topping a technical threshold that Bloomberg suggested could be the beginning of a longer rally. West Texas Intermediate topped $73 per barrel. At the time of writing, Brent was at $76.16 and WTI was at $73.39.

Expectations of an oil glut have not changed, at least not yet, but it seems that these expectations are not the leading factor for decision-making among oil traders. It seems, rather, that optimism is returning among speculators, as governments not only in China but elsewhere seek to spur economic growth.