Oil edged lower in light holiday trading on soft US jobs data and a retreat in natural gas futures.
West Texas Intermediate fell 0.7% to settle below $70 a barrel. US natural gas futures fell by more than 5% Thursday, dragging down the energy complex after forecasts pointed to lower-than-anticipated heating demand. Recurring applications for US unemployment benefits rose to the highest in more than three years, halting a rally in broader markets that also weighed on crude. At the same time, low liquidity exacerbated downward price moves, with aggregate trading volumes of WTI crude trending toward yearly lows.
These developments erased oil’s advance earlier on reports that China is giving local officials more leeway to invest proceeds of government bonds, while keeping interest rates unchanged for now.
Helping to set a floor on prices, the American Petroleum Institute said commercial crude inventories fell 3.2 million barrels last week, which would be the fifth consecutive drop if confirmed by official data. Nationwide stockpiles typically ebb in December, before building in the opening months of the new year.
There’s “not a lot of momentum to carry us into the new year for WTI,” said Rebecca Babin, senior energy trader at CIBC Private Wealth Group. “Traders are looking to January when Trump is inaugurated for the next catalyst. Until then, trading will likely be choppy.”
Crude is headed for a modest annual drop, although prices have been confined to a narrow range since mid-October. Heading into 2025, traders are looking at the possible implications of Donald Trump’s upcoming presidency, Beijing’s efforts to support the economy and prospects for global oil supplies, with OPEC planning to loosen curbs only gradually after a series of delays.
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With assistance from Yongchang Chin.
This article was generated from an automated news agency feed without modifications to text.
