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Oil prices edged lower on Thursday in light holiday trading, as the strength of the US dollar outweighed market optimism driven by China’s newly announced fiscal stimulus measures.

Brent crude decreased by 32 cents and settled at $73.26/barrel.

WTI fell by 38 cents and closed at $69.62/barrel.

The Chinese government unveiled a fiscal stimulus package valued at 3 trillion yuan ($411 billion), funded through the issuance of special treasury bonds. This initiative is part of a broader strategy to enhance fiscal support and drive economic recovery in 2025. However, persistent concerns about weak domestic consumption and an extended downturn in the property sector continued to exert downward pressure on demand in the world’s largest oil-importing nation.

At the same time, the US dollar maintained its upward trajectory, reaching new highs. The stronger currency increased the cost of dollar-denominated commodities for foreign buyers, further suppressing global demand.

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Written by: Muhammad Hafiz