Oil prices rise 1% in thin pre-holiday trade Via Reuters

Written by Laila Kearney and Paul Carsten

NEW YORK/LONDON (Reuters) – Oil prices rose more than 1% on Tuesday, reversing losses from the previous session on a brighter short-term outlook linked to expectations of a slight tightening of supplies as trading continues. it decreases before the Christmas and Hanukkah holidays.

Futures settled at $73.58, up 95 cents, or 1.3%. US West Texas Intermediate crude futures settled at $70.10, up 86 cents, or 1.2%.

FGE analysts said they expect prices to reverse around current levels in the near future “as paper market activity slows over the holidays and market participants remain on the sidelines until they get a better outlook.” a clear estimate of the world’s oil balances for 2024 and 2025.”

Supply and demand changes in December have supported their current weak outlook so far, FGE analysts said in a note.

“Given how short the paper market is at the moment, any supply disruption could lead to higher spikes,” they added.

Some analysts also point to signs of greater oil demand in the next few months.

“The year is ending with consensus from the majors on long-term 2025 water targets starting to break down,” Neil Crosby, executive vice president of oil analysis at Sparta Commodities said.

“The EIA’s short-term energy outlook has just changed their 2025 outlook, although it continues to add more barrels to OPEC+ next year,” Crosby said.

Oil and distillate stocks were seen falling last week by 3.2 million barrels and 2.5 million barrels, respectively, while petroleum products were seen rising last week, the sources said. of the market said, citing figures from the American Petroleum Institute. Oil production was seen to rise by 3.9 million barrels.

The figures come ahead of data from the Energy Information Administration, the statistical arm of the US Department of Energy, at 1 pm EST (1800 GMT) on Friday.

Also supporting prices was a plan by China, the world’s biggest oil exporter, to issue 3 trillion yuan ($411 billion) worth of special-treasury bonds this year. coming, as Beijing ramps up fiscal stimulus to revive the faltering economy.

China’s stimulus may provide near-term support for WTI at $67 a barrel, said OANDA senior market analyst Kelvin Wong.

Markets will also be watching the US economy, the world’s biggest oil consumer, which released a mixed bag of data.

While consumer confidence weakened in December, new orders for key US-made goods rose in November amid strong demand for machinery and new home sales rose, giving the impression that the American economy was in solid condition at the end of the year.

US markets will be closed on Wednesday, December 25, and there will be no global oil market report for the day.