Crude Oil Futures rose, and market trading was light at the year-end. Investors are focusing on the Middle East situation while assessing the market outlook for 2025.

West Texas Intermediate (WTI) Futures rose 1.4%, settling around $71 per barrel. Brent broke above $74.

An Indicator measuring WTI's 10-day volatility fell to its lowest level since July.

Israeli airstrikes reportedly targeted sites controlled by Houthi forces in Yemen, including power stations, ports, and the capital's airport. Houthi activities have been threatening shipping in the Red Sea, forcing tankers to take longer routes around Africa.

US Energy Information Administration (EIA) data shows that last week, US Crude Oil Product inventories fell by 4.2 million barrels, while Gulf Coast refinery crude processing hit a five-year high.

The near-month WTI contract is trading at a premium of more than 40 cents compared to the far-month contract, indicating tight supply in the short term.

WTI futures for February delivery on the New York market rose 1.4%, settling at $70.60 per barrel.

The settlement price for February-delivered Brent crude oil increased by 1.2%, to $74.17 per barrel.