Oil prices rise amid strong US economic data, optimism for global demand
Date
12/24/2024 8:49:14 AM
(MENAFN) Oil prices saw an uptick on Tuesday, supported by stronger-than-expected US economic growth data and optimism that global economic activity will drive oil demand. However, trading volumes remained relatively low ahead of the Christmas holiday.
Brent crude, the international benchmark, increased by 1.5 percent to USD72.84 per barrel at 11:18 AM local time (0818 GMT), compared to USD71.74 at the close of the previous session.
Meanwhile, the US benchmark West Texas Intermediate (WTI) also gained 0.8 percent, rising to USD69.63 per barrel from its prior session close of USD69.08.
Last week, concerns over inflation and the potential risk of a recession in the US had weighed on the market, along with uncertainty about the US Federal Reserve’s interest rate policy for 2025. However, recent data on personal consumption expenditures and economic growth in the US helped alleviate these inflationary worries, providing a more positive outlook for economic stability.
In China, the world’s largest oil importer, the Standing Committee of the National People’s Congress announced discussions on a new draft law aimed at strengthening the private sector, potentially adding to the global economic optimism that could support oil demand moving forward.
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