Oil prices dipped slightly on Thursday amid thin holiday trading, as a stronger U.S. dollar countered optimism over China’s fiscal stimulus plans. Brent crude fell 0.43% to $73.26 a barrel, while U.S. West Texas Intermediate dropped 0.68% to $69.62.
China plans to issue 3 trillion yuan ($411 billion) in special treasury bonds next year to bolster its slowing economy, boosting hopes for increased oil demand. The World Bank raised its 2024 and 2025 growth forecasts for China but noted challenges from weak confidence and a struggling property sector.
A rising U.S. dollar, which makes oil pricier for non-dollar buyers, added downward pressure. U.S. crude inventories reportedly dropped by 3.2 million barrels last week, with official data from the Energy Information Administration expected Friday. Analysts predict declines in crude, gasoline, and distillate inventories.
Meanwhile, southbound traffic in Turkey’s Bosphorus Strait resumed following earlier disruptions caused by a tanker engine failure.