Oil Prices on the Rise
In a surprising turn of events, oil prices saw a boost on Friday, poised to end the week on a positive note after experiencing two consecutive weeks of losses. The surge was fueled by optimism from a top US official regarding economic growth, coupled with lingering supply concerns due to conflicts in the Middle East, as reported by Reuters.
Brent crude futures saw an increase of 31 cents, or 0.4 percent, reaching $89.32 a barrel at 6:47 a.m. Saudi time. Similarly, US West Texas Intermediate crude futures rose by 23 cents, or 0.3 percent, hitting $83.80 a barrel.
For the week, Brent has shown a gain of 2.3 percent thus far, while WTI has climbed by 0.8 percent.
Treasury Secretary Janet Yellen, in an interview with Reuters on Thursday, hinted at a possible revision of US gross domestic product growth for the first quarter, projecting a decrease in inflation following a series of “peculiar” factors that hindered the economy from reaching its full potential in nearly two years.
Yellen suggested that the US economic growth might have been stronger than initially indicated by the weaker-than-expected quarterly data.
Despite data showing a slowdown in economic growth in the first quarter, concerns over an uptick in inflation had previously weighed down on oil prices. Investors had speculated that the Federal Reserve would delay interest rate cuts until September.
Additionally, geopolitical tensions in the Middle East have also played a role in boosting oil prices early in the trading session. Israel’s intensified airstrikes on Rafah, along with plans to evacuate civilians and launch a full-scale assault, despite warnings from allies about potential mass casualties, added to the supply concerns in the region.