Investing.com — Oil prices rose on Tuesday, but remained stuck in a tight trading range, as traders remained uncertain about potential abundant supply and declining demand next year.
At 11:58 ET (17:58 GMT), it rose 1.1% to $73.44 per barrel, and rose 1.2% to $70.03 per barrel.
Trading volumes were weak ahead of the Christmas holiday, while a stronger dollar also weighed on oil prices after the Federal Reserve signaled a slowing pace of interest rate cuts in 2025.
Oil suffers losses in 2024 as demand is affected
WTI prices are down about 5% so far in 2024, with concerns about slowing demand in China continuing as a major pressure point.
China's oil imports have declined steadily this year as the world's largest oil importer has suffered from slowing economic growth. While the country has outlined plans to increase fiscal spending and stimulus measures next year, markets are still demanding more clarity on the planned measures.
The increasing adoption of electric vehicles in China has also undermined the country's fuel demand.
Both OPEC and the International Energy Agency expected demand growth to slow in 2025 due to slowing demand in China. The country is also expected to face increasing economic headwinds from a renewed trade war with the United States under Donald Trump.
Uncertainty about supply prompts caution; US inventory data awaited
Oil markets have been on edge over a potential supply glut in 2025. While OPEC recently agreed to extend ongoing supply cuts until at least mid-2025, production is likely to rise elsewhere.
US oil production has remained close to record levels, and is likely to rise next year, especially with Trump's pledge to increase domestic energy production.
US inventory data is due later on Tuesday and should provide further signals on oil production and supplies.
(Peter Nourse contributed to this article.)
