Oil prices rose on Tuesday, reversing the prior session’s losses, buoyed by slightly positive market outlooks for the short term and stronger U.S. economic data, despite thin trade ahead of the Christmas holiday.
Brent crude futures were up 33 cents, or 0.5%, to $72.96 a barrel, and U.S. West Texas Intermediate crude futures rose 29 cents, or 0.4%, to $69.53 a barrel at 0422 GMT.
FGE analysts said they anticipated the benchmark prices would fluctuate around current levels in the short term “as activity in the paper markets decreases during the holiday season and market participants stay on the sidelines until they get a clearer view of 2024 and 2025 global oil balances.”
Supply and demand changes in December have been supportive of their current less-bearish view so far, the analysts said in a note.
“Given how short the paper market is on positioning, any supply disruption could lead to upward spikes in structure,” they added. Some other analysts also pointed to signs of a positive outlook for oil over the next few months.
