(Bloomberg) -- Oil held steady in light holiday trading as soft US jobs data capped earlier gains. Traders also weighed fiscal stimulus measures in China and a US industry report signaling another drop in domestic stockpiles.
West Texas Intermediate traded near $70 a barrel, after a 1.2% climb in the previous session. Recurring applications for US unemployment benefits rose to the highest in more than three years, halting a rally in broader markets. Oil’s advancer earlier Thursday was driven by reports that China is giving local officials more leeway to invest proceeds of government bonds, while keeping interest rates unchanged for now.
In the US, the American Petroleum Institute said commercial crude inventories fell 3.2 million barrels last week, which would be the fifth consecutive drop if confirmed by official data. Nationwide stockpiles typically ebb in December, before building in the opening months of the new year. Meanwhile, aggregate trading volumes of WTI crude trended toward yearly lows.
Crude is headed for a modest annual drop, although prices have been confined to a narrow range since mid-October. Heading into 2025, traders are looking at the possible implications of Donald Trump’s upcoming presidency, Beijing’s efforts to support the economy and prospects for global oil supplies, with OPEC+ planning to loosen curbs only gradually after a series of delays.
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--With assistance from Yongchang Chin.
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