NY oil prices jump 2% on China stimulus hopes

Oil prices in New York jumped 2% on the first trading day of the new year as optimism over China's stimulus package prevailed.

West Texas Intermediate crude for February delivery, the basis for the New York Mercantile Exchange, jumped $1.41, or 1.97% from the previous session to close at $73.13 a barrel.

Brent crude oil for March delivery, which is subject to international market comparisons, closed at $75.93 a barrel, up $1.29, or 1.73% from the previous session.

Expectations that China's demand for crude oil would improve supported oil prices as Chinese President Xi Jinping vowed to boost China's growth in his New Year's address.

Market analysts said, "Investors are weighing rising geopolitical risks and the aftermath of Trump's second term of policy as they return from vacation," and predicted, "The manufacturing index, which will be released on the 3rd, will determine the direction of oil prices."