The price of oil decreased by 0.2% in thin holiday trade, while market participants took a wait-and-see attitude ahead of the publication of statistical data from China and the United States, which will help clarify the prospects for oil demand.
On Friday, the Energy Information Administration said that in the week ending December 20, crude oil inventories in the United States decreased by 4.2 million barrels to 416.8 million barrels. Economists had expected a decline of 2 million barrels. The crude oil refinery inputs averaged 16.8 million barrels per day, climbing by 205,000 bpd compared to the previous week's figure. Refineries operated at 92.5% of their operable capacity, while gasoline production increased and averaged 9.9 million bpd. Crude oil imports dropped by 178,000 bpd on a weekly basis to average 6.5 million bpd. Meanwhile, total commercial petroleum inventories were down by 12.7 million barrels.
As for China, economists expect economic growth to accelerate in 2025 amid recent Chinese government stimulus measures, which could boost demand from the largest oil-importing country. In addition, lower rates in the United States and other countries should also support oil consumption.
This week, investors will focus on Chinese manufacturing PMI and non-manufacturing PMI for December, while the United States will present the ISM manufacturing PMI for December. Economists expect the manufacturing PMI to remain at 50.3 points, the non-manufacturing PMI rose to 50.2 points, and the ISM manufacturing PMI declined to 48.3 from 48.4.