SINGAPORE, Jan 2 Reuters Oil prices nudged higher on Thursday, the first day of trade for 2025, as investors returning from holidays cautiously eyed China39;s economy and fuel demand following a pledge by President Xi Jinping to promote growth.

Brent crude futures rose 16 cents, or 0.21, to 74.80 a barrel by 0829 GMT after settling up 65 cents on Tuesday, the last trading day for 2024. U.S. West Texas Intermediate crude futures gained 16 cents, or 0.22, to 71.88 a barrel after closing 73 cents higher in the previous session.

China39;s Xi said on Tuesday in his New Year39;s address that the country would implement more proactive policies to promote growth in 2025.

China39;s factory activity grew in December, according to the privatesector CaixinSP Global survey on Thursday, but at a slower than expected pace amid concerns over the trade outlook and risks from tariffs proposed by U.S. Presidentelect Donald Trump.

The data echoed an official survey released on Tuesday that showed China39;s manufacturing activity barely grew in December, though services and construction recovered. The data suggested policy stimulus is trickling into some sectors as China braces for new trade risks.

Traders are returning to their desks and probably weighing higher geopolitical risks and also the impact of Trump running the U.S. economy red hot versus the impact of tariffs, IG market analyst Tony Sycamore said.

Tomorrow39;s US ISM manufacturing release will be key to crude oil39;s next…