At the close of yesterday's session, Brent crude futures rose 95 cents (1.3%) to $73.58 a barrel, while U.S. light sweet crude (WTI) rose 86 cents (1.2%) to $70.10 a barrel.
Analysts at energy consultancy FGE expect oil prices to hover around current levels in the short term, as trading activity slows during the holidays and investors look to get a clearer picture of the global balance in 2024 and 2025.
Some analysts also point to signs that oil demand will rise further in the coming months.
According to data from the American Petroleum Institute (API), US crude oil and distillate inventories fell by 3.2 million barrels and 2.5 million barrels respectively last week, while gasoline inventories increased by 3.9 million barrels.
Another factor supporting oil prices is China’s plan to issue 3 trillion yuan ($411 billion) in special government bonds next year, a move seen as a step toward boosting fiscal stimulus to shore up the world’s second-largest economy.
Kelvin Wong, senior market analyst at online brokerage OANDA, said China's stimulus measures could support WTI crude oil prices in the short term at $67 a barrel.
