Oil prices rose by 1% amid low pre-holiday trading activity
25 December 10:31
On Tuesday, December 24, oil prices rose by more than 1%, which offset the losses of the previous trading session. This growth occurred amid improved short-term prospects and expectations of a slight reduction in supplies after trading slowed down on the eve of Christmas and Hanukkah. This was reported by Komersant ukrainskyi with reference to Reuters.
As a result of trading, Brent crude oil futures closed at $73.58 per barrel, up 95 cents (1.3%). US West Texas Intermediate (WTI) also showed growth, closing at $70.10 per barrel, up 86 cents (1.2%) from the previous figure.
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Forecasts and expectations
FGE analysts predict that in the near future, benchmark prices will fluctuate around current levels. This is due to a decline in activity on the paper markets during the holiday season, as market participants took a wait-and-see attitude until they get a clearer picture of the global oil balance for 2025.
China, the world’s largest oil importer, also has a significant impact on the market. The country plans to issue special treasury bonds worth 3 trillion yuan (about $411 billion) next year. This decision is part of a large-scale fiscal stimulus plan aimed at reviving the economy, which is showing signs of slowing down.
As for the situation in the United States, the world’s largest oil consumer, mixed economic indicators are observed. Despite the weakening of consumer confidence in December, the country is showing an increase in new orders for major industrial goods and a recovery in new home sales, which indicates that the economy is resilient at the end of the year.
According to industry experts, crude oil stocks in the United States may decline by 3.2 million barrels and distillate stocks by 2.5 million barrels. At the same time, gasoline stocks are expected to grow by 3.9 million barrels.
Calvin Wong, Senior Market Analyst at OANDA, notes that China’s economic stimulus is likely to provide short-term support for WTI at $67 per barrel.
