Oil up in thin trade as market awaits more demand cues

ANKARA – Oil prices edged higher on Monday in thin holiday trading, as the market awaited further clues on the demand outlook from the world’s largest oil consumers, the US and China, ahead of the yearend.

The international benchmark Brent crude rose by 0.29 percent to USD73.61 per barrel at 10.38 a.m. local time (0738 GMT), up from USD73.40 at the close of the previous session.

The US benchmark West Texas Intermediate (WTI) increased by 0.34 percent to USD70.33 per barrel, compared to its prior session close of USD70.09.

Latest data from the Energy Information Administration (EIA) revealed a larger-than-expected decline in crude oil inventories in the US, signaling strong demand in support of higher prices.

US commercial crude oil inventories decreased by around 4.2 million barrels during the week ending Dec. 20, against the market prediction of a 700,000 barrels draw.

Demand optimism in China supported prices, despite a holiday-shortened week that led to thin market volumes.

The World Bank raised its forecast for China’s economic growth in 2024 and 2025, while the country also upgraded its estimate for the size of its economy.

However, uncertainties around both supply and demand continue as US President-elect Donald Trump prepares to take office on Jan. 20. (Anadolu)