05:13 AM EST, 01/02/2025 (MT Newswires) -- Crude oil prices rose on the first trading day of 2025 on hopes of economic and fuel demand recovery in China following President Xi Jinping's pledge to promote growth.

Brent crude gained 0.8% to US$75.21 per barrel and West Texas Intermediate crude was up 0.8% to US$72.28/b at last look early Thursday. This comes after Xi's New Year's address on Tuesday in which he said the country will implement more proactive policies to promote growth, Reuters said in a Thursday report.

China's factory activity grew in December, Reuters reported, citing the private sector Caixin/S&P Global survey. However, the pace of growth will be slower than expected due to concerns about the trade outlook and tariff risks in the U.S.

The data echoed official survey results on Tuesday showing China's manufacturing activity barely grew in December, but services and construction recovered. The data suggested policy stimulus is trickling into some sectors, the report said.

In Europe, Russia halted natural gas exports through Ukraine on New Year's Day. However, the stoppage was anticipated and is not expected to affect prices in the European Union as some buyers have arranged for alternative supply.