Oil prices rose in pre-holiday trading on Tuesday, recovering the losses incurred the day before.
The cost of February futures for Brent on the London ICE Futures exchange rose by $0.95 (1.3%) to $73.58 per barrel.
February futures for WTI on the New York Mercantile Exchange (NYMEX) rose by $0.86 (1.2%) to $70.1 per barrel.
Media reports that China may issue special treasury bonds worth a record 3 trillion yuan ($411 billion) in 2025 to raise funds to support the national economy have encouraged oil traders. China is one of the world’s largest oil importers and consumers.
Quotes continue to be supported by concerns about geopolitical tensions in Eastern Europe and the Middle East, as well as the prospect of tighter sanctions against Russia and Iran.
Meanwhile, expectations of an oversupply of crude oil amid unclear demand prospects and a stronger US dollar are having a restraining effect on oil prices, making commodities less attractive.
The market was evaluating the latest statements by US President-elect Donald Trump, who threatened to restore Washington’s control over the Panama Canal if the fee for passage through it is not reduced, and was also waiting for official data on commercial oil reserves in the US, which will be published this week with a delay due to the holidays.
“We can assume that WTI will trade around the $70 mark until Friday, when the late weekly report from the Energy Information Administration is released, which will set additional price targets,” Ritterbusch said in a research note.
On Wednesday, exchanges in the US, UK, Germany, France and other European countries, as well as Hong Kong, South Korea and Australia, are closed for Christmas. Many sites will remain closed on Thursday.
