Oil drifts higher in sparse holiday trade [Video]

Oil prices edged up on Monday in thin holiday trade at the end of the year, as traders awaited more Chinese and U.S. economic data later this week to assess growth in the world’s two largest oil consumers.

Brent crude futures rose 20 cents to $74.37 a barrel. The more active March contract was at $74.00 a barrel, up 21 cents.

U.S. West Texas Intermediate crude gained 20 cents to $70.80 a barrel.

Investors are eyeing China’s PMI factory surveys due on Tuesday and the U.S. ISM survey for December to be released on Friday.

Both Brent and WTI rose about 1.4% last week buoyed by a larger-than-expected drawdown from U.S. crude inventories in the week ended Dec. 20 as refiners ramped up activity and the holiday season boosted fuel demand.

Available capacity at U.S. oil refiners is expected to decrease by 108,000 bpd in the week ending Jan. 3, research company IIR Energy said on Monday.

Oil prices were also supported by optimism for …