(Bloomberg) — Oil edged higher in light holiday trading, buoyed by fiscal stimulus measures in China and a US industry report flagging another drop in stockpiles.
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Brent traded near $74 a barrel, after a 1.3% gain in the previous session. In a bid to bolster growth, China is giving local officials more leeway to invest proceeds of government bonds, while keeping interest rates unchanged for now.
In the US, the American Petroleum Institute said commercial crude inventories fell 3.2 million barrels last week, which would be the fifth consecutive drop if confirmed by official data. Nationwide stockpiles typically ebb in December, before building in the opening months of the new year.
“The obvious caveats apply with reading too much into price action at this time of year, but those that are still putting orders through the market are net buyers,” helped by signs of a larger-than-expected US stockpile draw, said Chris Weston, head of research for Pepperstone Group. There’s also talk of positioning for possible policy moves in China early next year, he said.
Crude is headed for a modest annual drop, although prices have been confined to a narrow range since mid-October. Heading into 2025, traders are looking at the possible implications of Donald Trump’s upcoming presidency, Beijing’s efforts to support the economy, and prospects for global crude supplies, with OPEC+ planning to loosen curbs only gradually after a series of delays.
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