Oil prices surged on Tuesday, lifted by strong US economic growth data and hopes that global demand will drive oil consumption. However, trading remained light ahead of the Christmas holiday.
Brent crude, the international benchmark, rose 1.5% to $72.84 per barrel, up from $71.74 in the previous session. Meanwhile, US benchmark West Texas Intermediate (WTI) gained 0.8%, climbing to $69.63 per barrel from $69.08.
Earlier in the week, US data had fueled inflation concerns and worries about a potential recession, along with uncertainties over the Federal Reserve’s interest rate decisions for 2025. But recent economic growth figures and personal consumption data alleviated some of these fears, boosting confidence in the stability of the economy.
In China, the National People’s Congress discussed a draft law to strengthen the private sector, though analysts pointed out that weak domestic demand and real estate issues still pose significant challenges. Trade tensions also remain on the horizon.
With the holiday season in full swing, trading activity has slowed. US stock markets will close early on Tuesday and remain shut on Wednesday, while European markets will be open for half a day on Tuesday. Asian markets, including Hong Kong and South Korea, will also close for the holiday.
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