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Oil prices up by 1% in thin pre-holiday trade

Oil costs increased by more than 1% on Tuesday, reversing the prior session's losses on a brightening shortterm outlook tied to the possibility of slightly tightening up supplies as trade thinned ahead of the Christmas and Hanukkah vacations.

Brent crude futures settled at $73.58, rising 95 cents, or 1.3%. U.S. West Texas Intermediate crude futures settled at $70.10, rising 86 cents, or 1.2%.

FGE experts said they anticipate the standard prices will fluctuate around current levels in the near term as activity in the paper markets decreases during the holiday and market individuals remain on the sidelines until they get a clearer view of 2024 and 2025 worldwide oil balances.

Supply and need changes in December have been helpful of their existing less-bearish view up until now, the FGE analysts said in a note.

Provided how brief the paper market is on placing, any supply disruption could result in upward spikes in structure, they added.

Some experts likewise indicated indications of greater oil demand over the next couple of months.

The year is ending with the agreement from major companies over long 2025 liquids balances starting to break down, Neil Crosby, Sparta Commodities' assistant vice president of oil analytics, said in a note.

The EIA's short-term energy outlook (STEO) just recently shifted their 2025 liquids to a draw, regardless of continuing to restore some OPEC+ barrels next year, Crosby said.

U.S. petroleum and fuel stockpiles were anticipated to have fallen last week, with crude down about 1.9 million barrels in the week to Dec. 20, a prolonged Reuters poll showed.

The poll comes ahead of a report from the American Petroleum Institute market group at 4:30 p.m. EST (2130 GMT). on Tuesday and one from the Energy Info Administration,. the statistical arm of the U.S. Department of Energy, at 1 p.m. EST (1800 GMT) on Friday.

Also supporting costs was a plan by China, the world's. biggest oil importer, to provide 3 trillion yuan ($ 411 billion). worth of special treasury bonds next year, as Beijing increases. financial stimulus to restore a failing economy.

China's stimulus is likely to offer near-term assistance for. WTI crude at $67 a barrel, stated OANDA senior market analyst. Kelvin Wong. Markets will likewise be seeing the U.S. economy, the world's. biggest oil consumer, which launched a mixed bag of information.

While consumer self-confidence damaged in December, brand-new orders. for key U.S.-manufactured capital products rose in November amid. strong demand for machinery and new home sales rebounded,. recommending the U.S. economy was on a strong footing as the year. closes out.

U.S. markets will be closed on Wednesday, Dec. 25, and there. will be no international oil market report for the day.

(source: Reuters)