By Katya Golubkova
TOKYO (Reuters) – Oil prices rose on Tuesday in weak trading ahead of Christmas Day, with prices supported by U.S. economic data and rising oil demand in India, the world’s third-largest oil importer.
Futures rose 33 cents, or 0.45%, to $72.95 a barrel and U.S. West Texas Intermediate crude futures rose 29 cents, or 0.42%, to $69.53 a barrel at 0114 GMT.
New orders for key U.S.-made capital goods jumped in November on strong demand for machinery, while new home sales also picked up, a sign that the U.S. economy is on solid footing as the year ends.
The United States is the world’s largest oil consumer.
In the near term, traders are looking for clues on U.S. demand from crude oil and fuel inventory data due later on Tuesday from the American Petroleum Institute industry group.
Analysts polled by Reuters estimated that crude oil inventories fell by about 2 million barrels on average in the week ended Dec. 20, a sign of healthy demand. The Energy Information Administration is expected to release its data on Friday.
closed the last three sessions just below the $69.50 mark as volatility drained from the market ahead of the holiday season, said IG market analyst Tony Sycamore.
“Therefore, I suspect we will remain in a tight range on either side of $69.50, perhaps until Wall Street reopens on the 27th,” he said by email.
Meanwhile, crude oil imports from India, the world’s third-largest oil importer, rose 2.6% year-on-year to 19.07 million tonnes in November, government data showed, supported by strong demand amid rising economic and travel activity.
In the Middle East, a new attempt by mediators Egypt, Qatar and the United States to end fighting between Israel and Hamas gained momentum this month and narrowed the divide between the parties, according to statements from Israeli and Palestinian officials.
