Investing.com — Oil prices edged higher on Monday in holiday-influenced trading ahead of the release later in the week of the latest economic activity data from the U.S. and China.
At 2:30 PM ET (19:30 GMT), futures were trading 0.6% higher at $70.99 per barrel and the contract rose 0.5% to $74.18 per barrel.
Key activity data coming this week
Crude oil prices have rebounded this week, helped by optimism about Chinese economic growth next year, potentially boosting the country’s largest crude oil importing demand.
The World Bank last week raised its forecast for Chinese economic growth in 2024 and 2025.
China’s economic recovery has struggled this year, but authorities have agreed to issue a record 3 trillion yuan ($411 billion) in special government bonds in 2025, Reuters reported last week.
China will release its latest figures on Tuesday, and they will provide a final look at the strength of the world’s second-largest economy.
In addition, the US releases December figures on Friday, and once again traders will be looking for clues about the strength of economic activity in the world’s largest energy consumer.
Annual losses on course
However, both contracts are on track for annual losses, with WTI down around 1% and Brent down almost 4%, with traders still concerned about the health of the Chinese economy, as well as the potential for oversupply in the coming months.
The International Energy Agency predicts that global oil supply will easily exceed demand by 2025, even if cuts continue to be made by a group of top producers.
In addition, EIA data has shown that US oil production remains near record levels, and Donald Trump’s new administration is likely to agree to policies aimed at boosting domestic fossil fuel production.
