WTI price moves little as trading activity remains subdued before the Christmas holiday.
Oil prices received some support after recent data indicated that the US economy remained strong heading into the year-end.
The third-largest Oil importer India's crude Oil imports, increased by 2.6% YoY to 19.07 million metric tons in November.
West Texas Intermediate (WTI) Oil price continues to remain tepid for the second successive session, trading around $69.30 per barrel during the Asian hours on Tuesday. However, crude Oil prices found some support due to thin trading activity ahead of the Christmas holiday.
Additionally, Oil prices gained some support after US data showed that the economy of the United States (US), the largest Oil consumer, remained robust as the year-end approached. New orders for essential US-manufactured capital goods surged in November, driven by strong demand for machinery, while new home sales also rebounded, signaling that the US economy is on solid footing as the year ends.
Meanwhile, India's crude Oil imports, the third-largest in the world, increased by 2.6% year-on-year to 19.07 million metric tons in November, driven by strong demand amid rising economic and travel activity.
However, the prices of the black gold could find challenges due to concerns about potential oversupply during next year. European supply fears also eased after reports indicated that the Druzhba pipeline resumed operations following technical issues at a Russian pumping station.
The demand for dollar-denominated Oil faces challenges due to the stronger US Dollar (USD), which makes crude Oil more expensive for buyers holding foreign currencies. The Greenback receives support as traders are factoring in only two rate cuts in 2025 after Fed policymakers signaled fewer interest rate cuts next year due to a slowdown in the disinflation process.
In the Middle East, efforts by mediators Egypt, Qatar, and the US to end the fighting between Israel and Hamas have gained momentum this month, with Israeli and Palestinian officials noting that the gaps between the parties have narrowed. However, crucial differences remain unresolved, according to Reuters.
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