U.S. crude oil inventories fell by 1.2 million barrels last week, which was less than expected, while stocks of gasoline and distillate fuels saw large builds.

U.S. crude stocks fell while gasoline and distillate inventories rose sharply as demand weakened in the week ending December 27, the Energy Information Administration (EIA) said on Thursday.

Oil prices were rising as investors start the new year on a positive note. Brent crude and WTI were both up—0.5% at $74.98 a barrel and $72.05 a barrel, respectively. Optimism for oil demand has been boosted by Chinese leader Xi Jinping's annual New Year's address on Tuesday,

Oil prices settled up by more than $1 a barrel on Thursday as investors returned for the first trading day of 2025 with an optimistic eye on China's economy and fuel demand after a pledge by President Xi Jinping to promote growth.

Oil futures began 2025 on a positive note, boosted by hopes that China, the world’s largest crude importer, will follow through on pledges to further stimulate growth in the new year.