Oil prices rise in thin trade ahead of Christmas

TOKYO: Oil prices were up on Tuesday in thin trade ahead of the Christmas Day holiday, with prices supported by US economic data and rising oil demand in India, the world’s third-largest oil importer.

Brent crude futures were up 33 cents, or 0.45 per cent, to $72.95 a barrel and US West Texas Intermediate crude futures rose 29 cents, or 0.42 per cent, to $69.53 a barrel at 0114 GMT.

New orders for key US-manufactured capital goods surged in November amid strong demand for machinery, while new home sales also rebounded in a sign that the US economy is on a solid footing towards the year-end.

The United States is the world’s top oil consumer. In the shorter term, traders are looking for indications of US demand from the crude oil and fuel stockpiles data due from the American Petroleum Institute industry group later on Tuesday.

Analysts polled by Reuters estimated on average that crude inventories fell by about 2 million barrels in the week to December 20 in a sign of healthy demand. The Energy Information Administration is due to release its data on Friday.

WTI crude oil finished the last three sessions just below the $69.50 level as volatility seeped out of the market ahead of the holiday period, IG market analyst Tony Sycamore said.

“As such, I suspect we remain pinned in a narrow range either side of $69.50, perhaps until Wall Street re-opens on the 27th,” he said by email.

Meanwhile crude oil imports by India, the world’s third-largest oil importer, rose 2.6 per cent year-on-year to 19.07 million metric tons in November, government data showed, on the back of strong demand amid rising economic and travel activity.

In the Middle East, a fresh bid by mediators Egypt, Qatar and the US to end the fighting between Israel and Hamas has gained momentum this month and gaps between the parties narrowed, according to Israeli and Palestinian officials’ remarks, yet crucial differences have yet to be resolved.

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