Oil prices are rising due to increased production activity in China, according to Reuters.

Oil prices increased on Tuesday, December 31, following reports of growth in China's manufacturing activity in December.

According to Reuters.

The report states that Brent crude prices rose by 60 cents, or 0.8%, to $74.59 per barrel. American oil, West Texas Intermediate, increased by 62 cents, or 0.9%, to $71.61 per barrel. Over the year, Brent has decreased by 3.2%, while WTI has fallen by 0.1%.

It is noted that manufacturing activity in China has been rising for the third consecutive month in December, albeit at a slower pace. An official survey of factories released on Tuesday indicates that sharp stimulus measures are helping to support the world's second-largest economy.

The Chinese authorities have agreed to issue a record amount of special treasury bonds worth 3 trillion yuan ($411 billion) in 2025 to stimulate economic growth.

Weak demand forecasts in China have prompted OPEC and the International Energy Agency to revise their oil consumption expectations downward for 2025.

Background. Previously, Mind reported that oil prices increased amid declining reserves in the U.S. This was also supported by additional financial incentives in China.