Oil Prices Edge Up in Holiday Trading
Oil prices edged up on Monday in quiet holiday trading at the end of the year, as traders awaited more economic data from China and the U.S. later in the week to gauge growth in the world’s two largest oil consumers.
Brent crude futures were up 20 cents at $74.37 a barrel by 1208 GMT. The more active March contract was at $74.00 a barrel, up 21 cents.
U.S. West Texas Intermediate crude futures were up 27 cents at $70.87 a barrel.
Investors are eyeing China’s PMI factory survey due on Tuesday and the U.S. ISM survey for December due on Friday.
Both Brent and WTI rose about 1.4% last week, boosted by a larger-than-expected drawdown in U.S. crude inventories in the week to Dec. 20 as refiners ramped up activity and the holiday season boosted fuel demand.
Available capacity at U.S. refineries is expected to fall by 108,000 barrels per day in the week to Jan. 3, research firm IIR Energy said on Monday.
Oil prices are also supported by optimism about China’s economic growth next year, which could boost demand in the world’s largest crude importer
To revive growth, Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) worth of special government bonds by 2025, Reuters reported last week.
“Global oil consumption is set to hit an all-time high in 2024 despite China’s unmet expectations, and oil inventories will enter next year at relatively low levels,” said Ryan Fitzmaurice, senior commodity strategist at Marex.
“Looking ahead, China’s economic data is expected to improve as the latest stimulus measures kick in in 2025. In addition, lower interest rates in the U.S. and elsewhere should support oil consumption.”
Separately, the World Bank has raised its forecasts for China’s economic growth in 2024 and 2025, but warned that weakening household and business confidence, along with headwinds in the property sector, would remain a drag next year.
Source: Investing.com
