Oil prices rise 1% in thin pre-holiday trade
Shafaq News/ Oil prices rose more than 1% on Tuesday, reversing theprior session's losses on a brightening short-term outlook tied to the prospectof slightly tightening supplies as trade thinned ahead of the Christmas andHanukkah holidays.
Brent crude futures settled at $73.58, rising 95 cents, or 1.3%. U.S.West Texas Intermediate crude futures settled at $70.10, rising 86 cents, or1.2%.
FGE analysts said they expect the benchmark prices will fluctuate aroundcurrent levels in the near term "as activity in the paper marketsdecreases during the holiday season and market participants stay on thesidelines until they get a clearer view of 2024 and 2025 global oilbalances."
Supply and demand changes in December have been supportive of theircurrent less-bearish view so far, the FGE analysts said in a note.
"Given how short the paper market is on positioning, any supplydisruption could lead to upward spikes in structure," they added.
Some analysts also pointed to signs of greater oil demand over the nextfew months.
"The year is ending with the consensus from major agencies overlong 2025 liquids balances starting to break down," Neil Crosby, SpartaCommodities' assistant vice president of oil analytics, said in a note.
"The EIA's short-term energy outlook recently shifted their 2025liquids to a draw, despite continuing to bring back some OPEC+ barrels nextyear," Crosby said.
U.S. crude oil and distillate stocks were seen falling last week by 3.2million barrels and 2.5 million barrels, respectively, while gasoline stockswere seen rising last week, market sources said, citing American PetroleumInstitute figures. Gasoline inventories were seen rising by 3.9 millionbarrels.
Some of Rio Tinto's investors want to unify the miner's corporatestructure.
The figures come ahead of data from the Energy InformationAdministration, the statistical arm of the U.S. Department of Energy, at 1 p.m.EST (1800 GMT) on Friday.
Also supporting prices was a plan by China, the world's biggest oilimporter, to issue 3 trillion yuan ($411 billion) worth of special treasurybonds next year, as Beijing ramps up fiscal stimulus to revive a falteringeconomy.
China's stimulus is likely to provide near-term support for WTI crude at$67 a barrel, said OANDA senior market analyst Kelvin Wong.
Markets will also be watching the U.S. economy, the world's largest oilconsumer, which released a mixed bag of data.
While consumer confidence weakened in December, new orders for keyU.S.-manufactured capital goods surged in November amid strong demand formachinery and new home sales rebounded, suggesting the U.S. economy was on asolid footing as the year closes out.
U.S. markets will be closed on Wednesday, Dec. 25, and there will be noglobal oil market report for the day.
(Reuters)
