Oil prices edged higher in subdued pre-Christmas trading as investors balanced signs of tightening supply against demand concerns. Market activity remained light ahead of the holiday, amplifying price fluctuations. Brent crude rose to nearly $80 per barrel, while West Texas Intermediate (WTI) gained, hovering close to $75 per barrel.
Supply-side factors supported the rise, including concerns over output disruptions in key producing regions and expectations of declining U.S. inventories. However, demand uncertainty, driven by slower global economic growth and mixed signals from major energy consumers, tempered the rally. Traders were cautious, awaiting key data releases early next week.
The recent volatility underscores the fragility of the market, with any supply or demand signal significantly impacting prices due to lower trading volumes. While the gains reflect optimism about stabilizing fundamentals, thin liquidity conditions mean prices could shift sharply in either direction.
