Oil rises over 1% on large draw from US crude stocks By Reuters

By Shariq Khan

NEW YORK, (Reuters) – Oil prices rose on Friday, set for a weekly gain on lower trading volume ahead of the end of the year, fueled by a larger-than-expected inventory draw last week.

Futures were up 91 cents, or 1.2%, at $74.17 a barrel by 1:58 p.m. EST (1858 GMT). U.S. West Texas Intermediate crude futures were up $1.01, or 1.5%. reaching $70.63 per barrel.

On a weekly basis, both Brent and WTI oil will increase by about 1.6%.

U.S. crude oil inventories fell by 4.2 million barrels in the week ended Dec. 20 as refiners ramped up activity and the holiday season boosted demand for the fuel, data from the U.S. Energy Information Administration showed on Friday. [EIA/S]

Analysts polled by Reuters had expected output of 1.9 million barrels, while American Petroleum Institute data released earlier in the week estimated 3.2 million barrels, according to market sources. [API/S]

Optimism about China’s economic growth has also fueled hopes of stronger demand from the top oil importer next year.

The World Bank on Thursday raised its forecasts for China’s economic growth in 2024 and 2025. Meanwhile, Chinese authorities have agreed to issue 3 trillion yuan ($411 billion) in special treasury bonds next year, sources told Reuters this week. that Beijing is trying to revive the sluggish economy.

The war between Russia and Ukraine, which has dominated energy markets due to stagnant global oil demand, appears to be returning to the fore after a series of events this week that could affect supplies next year, the trading office of fuel distributor TACenergy wrote on Friday.

NATO announced on Friday it would increase its presence in the Baltic Sea, a day after Finland seized a Russian oil tanker it suspected of causing disruptions to the internet and power cables.Meanwhile, Dutch and British wholesale prices in Ukraine rose against the backdrop of fading hopes of concluding a new deal on the transit of Russian gas through the territory.

Tensions have also risen in the Middle East, after Israel attacked a hospital in northern Gaza on Friday and hit targets linked to the Houthi movement in Yemen on Thursday, but these events are unlikely to affect oil prices next year, StoneX analyst Alex said. Hodes said.

Instead, the biggest risk in the Middle East is the imposition of sanctions, which is likely to happen in the United States with the incoming administration of Donald Trump, he said.