Oil prices fell on Monday in weak holiday trading ahead of the year-end as traders assessed growth in the world’s two biggest oil consumers, expecting more Chinese and US economic data this weekend.
Brent crude futures were down 8 cents to $74.09 a barrel by 0700 GMT, while the more active March contract was down 6 cents to $73.73 a barrel. WTI Crude was down 5 cents to $70.55 a barrel.
Both contracts rose about 1.4% last week, driven by a larger-than-expected draw in U.S. crude inventories in the week ending Dec. 20 as refineries ramped up activity and the holiday season boosted fuel demand.
Oil prices were also supported by optimism about economic growth next year, which could boost demand in China, the largest importer of crude oil.
Last week, Chinese authorities agreed to issue a record 3 trillion yuan ($411 billion) worth of special treasury bonds in 2025 to boost growth.
Despite China falling short of expectations, global oil consumption reached an all-time high in 2024 and oil inventories are entering next year at relatively low levels.
China’s economic data for next year is expected to improve as recent stimulus measures take effect. Lower rates in the United States and elsewhere are also expected to support oil consumption.
On Monday, China also issued a second batch of crude import quotas for independent refiners for 2025, totaling at least 152.49 million metric tons, trade sources said.
The World Bank raised its forecast for China’s economic growth in 2024 and 2025, but warned that low household and business confidence, as well as housing concerns, would remain a drag next year.
Investors are closely watching the Chinese PMI factory surveys due on Tuesday and the U.S. December ISM survey due on Friday.
In Europe, hopes for a new deal to transport Russian gas through Ukraine faded after Putin said on Thursday that there was no time left to sign a new deal this year. That would require Europe to import more liquefied natural gas (LNG) because of the loss of Russian gas transported by pipeline.
