09:00 AM EST, 01/06/2025 (MT Newswires) -- Oil rose for a sixth-straight session early on Monday, climbing to a three-month high on expectations stimulus measures introduced by China last week will boost demand.

West Texas Intermediate crude oil for February delivery was last seen up US$0.43 to US$74.39 per barrel, the highest since Oct. 11, while March Brent crude was up US$0.52 to US$77.03.

The rise comes as China last week took additional steps to boost consumer demand, including higher wages for government employees and funding long-duration bonds. A 1.2-million barrel drop in U.S. inventories reported last week by the Energy Information Administration is also supporting oil.

"Crude oil saw a strong rise last week, supported by robust Asian demand, lower US inventories, and a technical breakout that led to fresh momentum buying in both Brent and WTI. Nevertheless, the upside appears limited due to demand uncertainties and elevated OPEC+ spare capacity," Saxo Bank noted.

Cold U.S. weather is also boosting oil prices. Forecasts are calling for a chilly January for most states and a massive storm is pummeling the Midwest and mid-Atlantic states.