WTI edges higher to near $70.00 on China stimulus, New EU sanctions against Russia

• WTI extends its upside to $69.95 in Thursday’s early European session. 
• A possible tightening of US sanctions on Russian oil and further China stimulus measures lift the WTI price. 
• OPEC cuts demand growth outlook for 2024-2025 for five months in a row. 

West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $69.95 on Thursday. The WTI price edges higher amid concerns over sluggish global demand growth and possible tighter sanctions on Russia and Iran.

The Biden administration on Wednesday is considering stricter sanctions on Russia’s oil trade to increase pressure on the Kremlin, just weeks before Donald Trump returns to the White House, per Bloomberg. Additionally, the European Union agreed on a new round of sanctions against Russia on Wednesday because of its ongoing war in Ukraine. This, in turn, could tighten global crude supplies and lift the WTI price. 

Growing expectations of further China stimulus contribute to the WTI’s price. Chinese authorities said on Monday it would adopt an "appropriately loose" monetary policy in 2025 as Beijing tries to boost its economy with the first easing of its stance in 14 years. "This has sparked optimism in the oil market, with traders hopeful that these initiatives could drive higher oil consumption," said Li Xing Gan, financial markets strategist consultant to Exness.

A fall in US crude inventories last week might underpin the black gold price. The US Energy Information Administration (EIA) weekly report showed Crude oil stockpiles in the United States for the week ending December 6 declined by 1.425 million barrels, compared to a fall of 5.073 million barrels in the previous week. The market consensus estimated that stocks would decrease by 1.1 million barrels. 

On the other hand, OPEC cut its forecasts for demand growth in 2024 and 2025 for the fifth straight month on Wednesday. "OPEC are squaring up to reality about what they are facing, the (demand growth forecast) cuts highlight that they have their hands full in terms of trying to balance this market heading into 2025," said John Kilduff, partner at Again Capital in New York.