Investing.com -- Oil prices settled higher Monday, in thin holiday-impacted trade, ahead of the release later in the week of the latest economic activity data from the US and China.
By 2:30 p.m. ET (19:30 GMT), the U.S. crude futures traded 0.6% higher at $70.99 a barrel and the Brent contract climbed 0.5% to $74.18 a barrel.
Key activity data due this week
Crude prices have bounced this week, helped by optimism for Chinese economic growth next year, potentially boosting demand from the top crude oil importing nation.
The World Bank last week raised its forecast for China's economic growth in 2024 and 2025.
The Chinese economic recovery has struggled this year, but the authorities have agreed to issue a record 3 trillion yuan ($411 billion) in special treasury bonds in 2025, Reuters reported last week.
China releases its latest PMI factory surveys on Tuesday, and these will provide the latest glimpse at the strength of the second largest economy in the world.
Additionally, the US releases the ISM survey for December on Friday, and again traders will be seeking clues over the strength of economic activity in the world’s largest energy consumer.
Annual losses on track
However, both contracts are on course for annual losses, with WTI down around 1% and Brent almost 4% lower, with traders still concerned about the health of the Chinese economy, as well as the potential for excess supply in the coming months.
The International Energy Agency forecast global oil supply will easily exceed demand in 2025 even if cuts remain in place from a group of top producers.
Additionally, EIA data has shown that US oil production remains near record levels, and the incoming Donald Trump administration is likely to agree to policies that would focus on ramping up domestic fossil fuel production.