Oil prices edge higher amid light pre-Christmas trading
Shafaq News/ Oil prices rose onTuesday, reversing the prior session's losses, buoyed by slightly positivemarket outlooks for the short term and stronger U.S. economic data, despitethin trade ahead of the Christmas holiday.
Brent crude futures were up 33cents, or 0.5%, to $72.96 a barrel, and U.S. West Texas Intermediate crudefutures rose 29 cents, or 0.4%, to $69.53 a barrel at 0422 GMT.
FGE analysts said they anticipatedthe benchmark prices would fluctuate around current levels in the short term"as activity in the paper markets decreases during the holiday season andmarket participants stay on the sidelines until they get a clearer view of 2024and 2025 global oil balances."
Supply and demand changes inDecember have been supportive of their current less-bearish view so far, theanalysts said in a note.
"Given how short the papermarket is on positioning, any supply disruption could lead to upward spikes instructure," they added.
Some other analysts also pointed tosigns of a positive outlook for oil over the next few months.
"The year is ending with theconsensus from major agencies over long 2025 liquids balances starting to breakdown," said Neil Crosby, Sparta Commodities' assistant vice-president ofoil analytics, in a note. "The EIA's STEO (short-term energy outlook)recently shifted their 2025 liquids to a draw despite continuing to bring backsome OPEC+ barrels next year."
Solid economic prospects for theUnited States, the world's largest oil consumer, are also supporting prices.
New orders for key U.S.-manufacturedcapital goods surged in November amid strong demand for machinery, while newhome sales also rebounded, in a sign that the U.S. economy is on a solidfooting towards the year-end.
In the shorter term, traders arelooking for indications of U.S. demand from the crude oil and fuel stockpilesdata due from the American Petroleum Institute industry group later on Tuesday.
Analysts polled by Reuters estimatedon average that crude inventories fell by about 2 million barrels in the weekto Dec. 20 in a sign of healthy demand. The Energy Information Administrationis due to release its data on Friday.
(REUTERS)
