Trading volume was thin before the official start of the New Year, as many traders and institutional investors typically take a break for the holidays. Year-end profit-taking and portfolio rebalancing are dampening trading activity.
The U.S. Energy Information Administration (EIA), the statistical arm of the U.S. Department of Energy, is expected to release its weekly report later on Friday.
The numbers affect prices and economic decisions by providing insights into the dynamics of supply and demand in the U.S. crude oil market. U.S. crude inventories fell by 3.2 million barrels in the week ended Dec. 20, according to media reports earlier this week citing data from the American Petroleum Institute (API).
The decline is a sign of tighter supply in the U.S. crude oil market, which is weighing on oil prices globally. Oil prices rose slightly after the API report, helped by reports of a decline in US crude stocks and expectations of further fiscal stimulus in China.
