Oil Prices Tick Up Despite Thin Pre-Christmas Trading

24 Dec 2024 , 09:56 AM

Due to increased demand in India, the world’s third-largest oil importer, and U.S. economic indicators, oil prices rose Tuesday in light trading ahead of the Christmas Day holiday.

U.S. West Texas Intermediate crude futures increased 29 cents, or 0.42%, to $69.53 a barrel, while Brent crude futures increased 33 cents, or 0.45%, to $72.95 a barrel.

Strong demand for machinery drove a spike in new orders for important capital goods made in the United States in November. Meanwhile, new home sales also increased, indicating that the U.S. economy is doing well as the year draws to a close.

Short-term traders are watching the American Petroleum Institute industry group’s data on fuel and crude oil inventories, which is coming later Tuesday, for clues on U.S. demand.

According to government figures, India, the third-largest oil importer in the world, imported 19.07 million metric tonnes of crude oil in November, up 2.6% year over year due to robust demand brought on by an increase in travel and economic activity.

According to statements made by Israeli and Palestinian officials, a new attempt by mediators Egypt, Qatar, and the United States to put an end to the conflict between Israel and Hamas has gathered steam this month, and the parties’ disagreements have decreased, but significant issues remain unresolved.

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