Shafaq News/ Oil prices edged higher on Thursday in thin holidaytrading, driven by hopes for additional fiscal stimulus in China, the world'sbiggest oil importer, while an anticipated decline in U.S. crude inventoriesalso provided support.
Brent crude futures rose 11 cents, or 0.2%, to $73.69 a barrel by 0148GMT. U.S. West Texas Intermediate crude was at $70.25 a barrel, up 15 cents, or0.2%, from Tuesday's pre-Christmas settlement.
China plans to boost fiscal support for consumption next year byincreasing pensions and medical insurance subsidies for residents and expandingtrade-ins for consumer goods, according to a finance ministry announcement onTuesday.
Meanwhile, Chinese authorities have agreed to issue 3 trillion yuan($411 billion) worth of special treasury bonds next year, Reuters reported onTuesday, citing two sources, as Beijing ramps up fiscal stimulus to revive afaltering economy.
"Hopes for China's stimulus measures are supporting themarket," said Satoru Yoshida, a commodity analyst at Rakuten Securities.
"Expectations that fossil fuel production and demand will expandafter Donald Trump takes office as U.S. President next month are alsobolstering oil prices," he added.
An anticipated decline in U.S. crude and fuel inventories was alsosupporting the market.
An extended Reuters poll showed on Tuesday that crude inventories areexpected to have fallen by about 1.9 million barrels in the week to Dec. 20.Gasoline and distillate inventories are seen falling by 1.1 million barrels and0.3 million barrels, respectively.
U.S. crude oil and distillate stocks fell last week, market sourcessaid, citing American Petroleum Institute figures on Tuesday.
The latest data from the Energy Information Administration, thestatistical arm of the U.S. Department of Energy, is due at 1 p.m. EST (1800GMT) on Friday.
On the supply side, Libya's National Oil Corp (NOC) said on Wednesdaythat the country's average crude production in 2024 exceeded its target ofaround 1.4 million barrels per day.
($1 = 7.2975 Chinese yuan renminbi)
(Reuters)