Oil held steady after a rally, with stimulus measures in China and a U.S. industry report that signaled another draw in stockpiles in focus.

Brent traded below $74 a barrel after rising 1.3% on Tuesday, with West Texas Intermediate nearing $70. In a bid to boost growth, China has given local officials more freedom in how they invest government bond proceeds, while keeping interest rates unchanged for now. Policymakers pledged a "moderately loose" monetary stance in the top crude importer earlier this month.

In the U.S., the American Petroleum Institute said commercial crude inventories fell by 3.2 million barrels last week, which would be the fifth straight decline if confirmed by official data. National stockpiles typically decline in December, before rising in the opening months of the new year. "The obvious caveat applies to reading too much into price action at this time of year, but those still placing orders through the market are net buyers," helped by signs of a bigger-than-expected drawdown in U.S. stocks, said Chris Weston, head of research for Pepperstone Group. There is also talk of positioning for possible policy moves in China early next year, he said.

Crude is headed for a modest annual decline, though prices have been confined to a narrow range since mid-October. Looking ahead to 2025, traders are looking at the possible implications of Donald Trump's incoming presidency, Beijing's efforts to support its economy and the outlook for global crude supplies, with OPEC+ planning to ease curbs only gradually after a series of delays.

Source: Bloomberg