Daijiworld Media Network - New York

New York, Dec 29: Oil prices inched higher on Monday as US-led diplomatic efforts to end the war in Ukraine failed to produce a breakthrough, while China signalled stronger fiscal support to boost economic growth next year.

Brent crude rose above $61 a barrel, while West Texas Intermediate traded close to $57. The uptick came after US President Donald Trump said he made “a lot of progress” during talks with Ukrainian President Volodymyr Zelenskiy at Mar-a-Lago on Sunday, though key sticking points remain and further meetings are planned.

Despite the modest gains, oil is still on course for its fifth consecutive monthly decline in December — the longest losing streak in over two years. Prices have been under pressure due to fears of a global supply glut following increased output from OPEC+ members and other major producers. However, ongoing geopolitical tensions in regions such as Venezuela and Nigeria have helped limit the downside in recent weeks.

Commenting on the Ukraine situation, Gao Mingyu, chief energy analyst at China Futures Co, said there had been “no breakthrough” so far, particularly on contentious issues like the Donbas region partially occupied by Russian forces. “It feels like there’s still back-and-forth ahead,” she noted, adding that this uncertainty has lent some support to crude prices.

Meanwhile, China pledged to expand its fiscal spending base in 2026, according to a statement from the Ministry of Finance, signalling stronger government backing for economic growth. The world’s largest crude importer has been grappling with a prolonged property sector slowdown and external challenges, including trade frictions with the US.

Analysts also expect China’s aggressive crude stockpiling to continue, which could help absorb excess global supply and provide further support to oil prices in the months ahead.