By Katya Golubkova

Oil Prices Rise Ahead of Christmas

TOKYO (Reuters) – Oil prices rose on Tuesday in thin trading leading up to the Christmas holiday, supported by U.S. economic data and increasing oil demand in India, the world’s third-largest oil importer.

Brent crude futures increased by 33 cents, or 0.45%, to $72.95 a barrel, and U.S. West Texas Intermediate (WTI) crude futures climbed 29 cents, or 0.42%, to $69.53 a barrel at 0114 GMT.

In November, new orders for key U.S.-manufactured capital goods surged due to strong machinery demand, and new home sales rebounded, indicating a robust U.S. economy as the year comes to a close. The United States remains the world’s top oil consumer.

Traders are anticipating insights into U.S. demand from crude oil and fuel stockpiles data due from the American Petroleum Institute later on Tuesday. Analysts polled by Reuters estimate an average decline of about 2 million barrels in crude inventories for the week ending December 20, indicating healthy demand. The Energy Information Administration will release its data on Friday.

WTI crude oil has hovered just below the $69.50 mark over the last three sessions, as market volatility diminished in anticipation of the holiday period, according to IG market analyst Tony Sycamore. He noted, “I suspect we remain pinned in a narrow range either side of $69.50, perhaps until Wall Street reopens on the 27th.”

In India, crude oil imports rose by 2.6% year-on-year to 19.07 million metric tons in November, reflecting strong demand amid growing economic and travel activities.

In the Middle East, efforts by mediators Egypt, Qatar, and the U.S. to end the Israel-Hamas conflict gained momentum this month, with officials noting narrowing gaps between the parties, although crucial differences remain unresolved.