Oil prices climb up on US growth data

Oil prices climbed on Tuesday, buoyed by stronger US economic growth data and expectations that global economic activity will bolster oil demand, although trading volumes remain subdued ahead of the Christmas holiday.

The international benchmark Brent crude rose by 1.5% to $72.84 per barrel at 11:18 a.m. local time (0818 GMT), up from $71.74 at the close of the previous session.

The US benchmark West Texas Intermediate (WTI) also edged up by 0.8% to $69.63 per barrel, compared to its prior session close of $69.08.

Last week, data from the US, the world’s largest oil consumer, had raised concerns about inflation and the risk of a potential recession. Uncertainty surrounding the US Federal Reserve’s interest rate policy for 2025 also influenced oil price trends.

However, recent US data on personal consumption expenditures and economic growth eased these inflationary concerns, providing a more optimistic outlook for economic stability.

In China, the Standing Committee of the National People’s Congress, the legislative arm of the world’s largest oil-importing nation, announced discussions on a draft law aimed at strengthening the private sector.

Analysts noted that weak domestic demand and real estate issues remain pressing challenges for China’s economy, with the government prioritizing measures to address these concerns as potential trade conflicts loom.

Oil markets are seeing reduced trading activity as the Christmas holiday approaches.

US stock markets are set to close early on Tuesday and remain shut on Wednesday, resulting in expectations of limited trading volumes throughout the week.

Similarly, European stock markets will operate for half a day on Tuesday, with no trading scheduled for Wednesday.

In Asia, Hong Kong markets closed early on Tuesday and will stay shut on Wednesday and Thursday, while South Korean markets will be closed on Wednesday.