Oil Prices Steady on Holiday Trade, Eyes on Chinese and US Economic Data
Oil prices were little changed on Monday, as the market took a break before more Chinese and US economic data is released later this week. The Brent crude futures slipped 4 cents to $74.13 a barrel, while the more active March contract was down 4 cents at $73.75 a barrel. US West Texas Intermediate crude fell 1 cent to $70.59 a barrel.
The prices were boosted by a larger-than-expected drawdown from inventories in the week ended December 20, as refiners ramped up activity and the holiday season fueled demand. Optimism over Chinese economic growth next year also supported oil prices, as the country is expected to lift demand.
China has issued a record 3 trillion yuan (around $411 billion) in special treasury bonds in 2025, and oil consumption reached an all-time high in 2024 despite China underperforming expectations. The country has also issued at least 152.49 million metric tons of crude oil import quotas to independent refiners in the second batch for 2025.
Investors are now eyeing China’s PMI factory surveys due on Tuesday and the US ISM survey for December, which will be released on Friday. The World Bank has raised its forecast for China’s economic growth in 2024 and 2025, but warned that subdued household and business confidence, along with headwinds in the property sector, will remain a drag next year.
