Oil inches lower in thin trade, investors eye China, US data
2024.12.29 21:21
By Florence Tan
SINGAPORE (Reuters) – Oil prices slipped lower on Monday in thin holiday trade ahead of the year-end as traders awaited more economic data from China and the U.S. later this week to assess growth in the world’s two largest oil consumers.
futures fell 6 cents to $74.11 a barrel by 0111 GMT while the more active March contract was at $73.73 a barrel, down 6 cents.
U.S. West Texas Intermediate crude dropped 8 cents to $70.52 a barrel.
Both contracts rose about 1.4% last week buoyed by a larger-than-expected drawdown from inventories in the week ended Dec. 20 as refiners ramped up activity and the holiday season boosted fuel demand. [EIA/S]
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.
Separately, the World Bank has also 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 keep weighing it down next year.
Investors are eyeing China’s PMI factory surveys due on Tuesday and the U.S. ISM survey for December to be released on Friday.
In Europe, hopes for a new deal to transit Russian gas through Ukraine are fading after Russian President Vladimir Putin said on Thursday that there was no time left this year to sign a new deal.
The loss of piped Russian gas should see Europe import more liquefied (LNG), analysts said.
