The price of oil increased by 0.7%, helped by a slightly positive market outlook for the short term. Meanwhile, in a holiday-curtailed week, trading volumes were lower than usual.
Analysts predicted that prices would remain stable around current levels in the near term, citing reduced market activity during the holiday period and cautious trading until clearer forecasts for 2024 and 2025 emerge.
Some other analysts also pointed to signs of a positive outlook for oil over the next few months. The U.S. Energy Information Administration (EIA) recently shifted their 2025 liquids to a draw despite continuing to bring back some OPEC+ barrels next year.
Additionally, China's announcement of a 3 trillion yuan special treasury bond issuance for 2025, aimed at stimulating its slowing economy, provided further support to oil prices.
Traders are also monitoring U.S. economic data. Recent reports indicated strong demand for manufactured capital goods and a rebound in new home sales, reinforcing the view that the U.S. economy remains resilient as the year draws to a close.