Oil prices edged higher today in thin end of the year trade as investors awaited more Chinese and US economic data later this week to assess growth in the world's two largest oil consumers.
Brent crude futures rose 26 cents, or 0.35%, to $74.43 a barrel this afternoon. The more active March contract was at $74.23 a barrel, up 44 cents or 0.6%.
US West Texas Intermediate crude gained 58 cents, or 0.82%, to $71.18 a barrel.
Investors were waiting for China's PMI factory surveys due tomorrow and the US ISM survey for December to be released on Friday.
Both Brent and WTI rose about 1.4% last week buoyed by a larger-than-expected drawdown from US crude inventories in the week ended December 20 as refiners ramped up activity and the holiday season boosted fuel demand.
Available capacity at US oil refiners is expected to decrease by 108,000 bpd in the week ending January 3, research company IIR Energy said today.
Oil prices were also supported by optimism for Chinese economic growth next year that could lift demand from the top crude oil importing nation.
To revive growth, Chinese authorities have agreed to issue a record 3 trillion yuan ($411 billion) in special treasury bonds in 2025, Reuters reported last week.
"Global oil consumption reached an all-time high in 2024 despite China underperforming expectations, and oil stockpiles are heading into next year at relatively low levels," said Ryan Fitzmaurice, senior commodity strategist at Marex.
"Going forward, China economic data is expected to improve as the recent stimulus measures take hold in 2025. Also, lower rates in the U.S. and elsewhere should be supportive of oil consumption," he added.
Separately, the World Bank raised its forecast for China's economic growth in 2024 and 2025, but warned that subdued household and business confidence, along with headwinds in the property sector, would remain a drag next year.
