Oil rates increase amid thin holiday trading, more demand cues
Date
12/31/2024 3:51:54 AM
(MENAFN) Oil prices saw a slight increase on Monday, driven by thin holiday trading, as the market awaited further signals regarding the demand outlook from the US and China, the world’s largest oil consumers, heading into the new year.
Brent crude, the international benchmark, rose by 0.29 percent, reaching USD73.61 per barrel at 10:38 a.m. local time (0738 GMT), up from USD73.40 at the previous session's close. Meanwhile, the US benchmark, West Texas Intermediate (WTI), gained 0.34 percent, trading at USD70.33 per barrel, compared to its prior close of USD70.09.
Recent data from the energy Information Administration (EIA) showed a larger-than-expected drop in US crude oil inventories, indicating strong demand that could potentially support higher prices. US commercial crude oil stocks fell by approximately 4.2 million barrels in the week ending December 20, significantly exceeding the market’s forecast of a 700,000-barrel decline.
Despite a holiday-shortened week that led to thinner market volumes, demand optimism in China helped boost oil prices. The World Bank raised its economic growth forecast for China in 2024 and 2025, further supporting sentiment. However, uncertainties surrounding both supply and demand persist as President-elect Donald Trump prepares to assume office in January, adding to market unpredictability.
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