(Bloomberg) -- Oil gained in sparse trading ahead of the holidays as President-elect Donald Trump roils international politics and reports indicate China is planning bond sales to stimulate its economy.
West Texas Intermediate advanced more than 1.2% to settle above $70 a barrel. Base metals such as nickel were broadly higher after Reuters reported that China may sell a record 3 trillion yuan ($411 billion) of special bonds next year, in an attempt to bolster its slowing economy. Crude futures pushed past their 50-day moving average, triggering a brief spate of technical buying.
The market is also assessing Trump’s threats to seize the Panama Canal, as well as stricter sanctions on Iran and tariffs on China that may affect global oil balances. The dollar held near a two-year high, however, tempering commodity gains.
“The festive season seems to see little break from Donald Trump, with markets once again wondering how much of what Trump said will actually be followed through,” said Yeap Jun Rong, market strategist for IG Asia Pte.
Aggregate trading volumes of WTI crude slid well below their daily averages and will likely remain muted as markets close for year-end holidays.
Crude has remained in a tight range since the middle of October, with geopolitical uncertainty countering lackluster demand in top importer China and expectations for ample supply from the Americas. OPEC and its allies are also set to begin unwinding production cuts in 2025.
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