Oil prices declined on Monday amid weak holiday trading before the end of the year, as traders await new economic data from China and the United States this week to gauge the growth of the world's two largest oil consumers, UNN reports citing Reuters.
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Brent crude futures fell 8 cents to $74.09 per barrel by 0700 GMT, while the more active March contract was at $73.73 per barrel, down 6 cents.
U.S. West Texas Intermediate crude fell 5 cents to $70.55 per barrel.
Both contracts gained about 1.4% last week, helped by a larger-than-expected decline in U.S. crude stockpiles in the week ended December 20 as refineries increased activity and the holiday season boosted demand for fuel.
Oil prices were also supported by optimism about China's economic growth next year, which could boost demand from the world's largest crude oil importer.
To revive growth, the Chinese authorities have agreed to issue a record 3 trillion yuan ($411 billion) worth of special treasury bonds in 2025, Reuters reported last week.
"Global oil consumption is set to hit an all-time high in 2024, despite China falling short of expectations and oil inventories being relatively low next year," said Ryan Fitzmaurice, senior commodities strategist at Marex.
"Going forward, China's economic data is expected to improve as recent stimulus measures will take effect in 2025. In addition, lower interest rates in the US and other countries should support oil consumption," he said.
China has also issued a second batch of crude oil import quotas of at least 152.49 million tons for 2025 to independent refineries, trade sources said on Monday.
Separately, the World Bank raised its forecast for China's economic growth in 2024 and 2025, but warned that subdued household and business confidence and headwinds in the real estate sector will remain a drag next year.
Investors are watching the Chinese factory PMI surveys due on Tuesday and the US ISM survey for December, which will be published on Friday.
The publication notes that in Europe, hopes for a new agreement on Russian gas transit through Ukraine are fading after Russian dictator Vladimir Putin said on Thursday that there is no time left this year to sign a new deal.
Analysts say that the loss of Russian pipeline gas should lead to Europe importing more liquefied natural gas (LNG).
Oil prices rise on hopes of Chinese stimulus and falling US inventories26.12.24, 13:23