Oil prices experienced a decline on Monday amid light trading conditions typical of the holiday season, as market participants awaited forthcoming economic data from China and the United States later this week to evaluate growth prospects in the two largest oil-consuming nations.
Brent crude futures decreased by 6 cents, settling at $74.11 per barrel by 0111 GMT, while the more actively traded March contract also fell by 6 cents to $73.73 per barrel.
Meanwhile, U.S. West Texas Intermediate crude saw a reduction of 8 cents, bringing it to $70.52 per barrel.
Both oil contracts had gained approximately 1.4% in the previous week, driven by a larger-than-anticipated reduction in U.S. crude inventories for the week ending December 20, as refiners increased their operations and holiday demand for fuel surged.
Additionally, there is optimism surrounding China's economic growth in the coming year, which could enhance demand from the world's leading crude oil importer.
In an effort to stimulate growth, Chinese authorities are set to issue a record 3 trillion yuan ($411 billion) in special treasury bonds in 2025, as reported by Reuters last week.
In a separate development, the World Bank has upgraded its projections for China's economic growth in 2024 and 2025, although it cautioned that weak household and business confidence, along with challenges in the property sector, may continue to exert pressure on growth next year.
Market participants are closely monitoring China's PMI factory surveys scheduled for release on Tuesday, as well as the U.S. ISM survey for December, which will be published on Friday.
In Europe, prospects for a new agreement to facilitate the transit of Russian gas through Ukraine are diminishing, following Russian President Vladimir Putin's statement on Thursday indicating that there is insufficient time to finalize a new deal this year.
Analysts suggest that the reduction in piped Russian gas supplies will likely lead Europe to increase its imports of liquefied natural gas (LNG).