Oil Prices Edge Higher Amid Strong U.S. Economic Data, Rising Indian Demand

Oil prices edged higher on Tuesday in light trading ahead of the Christmas holiday, buoyed by robust U.S. economic data and increased oil demand in India, the world’s third-largest oil importer.

Brent crude futures rose 33 cents (0.45%) to $72.95 a barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed 29 cents (0.42%) to $69.53 a barrel as of 0114 GMT.

Strong U.S. economic indicators, including a surge in new orders for key manufactured goods in November and a rebound in home sales, signalled a resilient economy heading into the year-end. As the top global oil consumer, U.S. demand remains a key market driver.

Short-term traders are awaiting data from the American Petroleum Institute (API) later Tuesday, with analysts predicting a 2-million-barrel drop in U.S. crude inventories for the week ending Dec. 20, indicating healthy demand. The Energy Information Administration is set to release its data on Friday.

WTI crude hovered around $69.50 over the last three sessions, with limited market activity ahead of the holiday season. Tony Sycamore, an IG market analyst, noted a likely narrow trading range around this level until Wall Street reopens on Dec. 27.

India’s crude oil imports rose by 2.6% year-on-year in November to 19.07 million metric tons, driven by strong economic and travel activity, according to government data.

In the Middle East, mediators from Egypt, Qatar, and the U.S. have advanced efforts to broker a ceasefire between Israel and Hamas. While significant progress has been made, key differences remain unresolved, according to officials from both sides.

(With Input from Agencies)