Synopsis : Oil prices rebounded after two weeks of decline, driven by positive economic outlook comments from a senior U.S. official and ongoing geopolitical tensions in the Middle East. Brent crude futures rose by 0.5% to $89.48 a barrel, while U.S. West Texas Intermediate crude futures increased by the same percentage to $84.01 a barrel.
Brent crude futures increased by 47 cents, or 0.5%, reaching $89.48 a barrel at 0640 GMT, while U.S. West Texas Intermediate crude futures climbed 44 cents, or 0.5%, reaching $84.01 a barrel.
Oil prices surged on Friday, poised to conclude the week with gains after enduring two consecutive weeks of declines.
The uptick came following optimistic remarks from a senior U.S. official regarding economic expansion, alongside lingering supply concerns driven by conflicts in the Middle East.
Throughout the week, Brent has seen a rise of 2.4%, while WTI has experienced a 0.9% increase.
Treasury Secretary Janet Yellen's statements to Reuters on Thursday suggested a potential upward revision of U.S. GDP growth for the first quarter, with expectations of inflation easing following peculiar economic factors that previously led to the weakest economic performance in nearly two years.
Despite initial indications of slower economic growth in the first quarter, Yellen's reassurance sparked confidence, particularly as concerns over inflation had previously dampened oil prices, with investors speculating on the Federal Reserve's potential response to the situation.
Additionally, ongoing tensions in the Middle East contributed to upward pressure on prices during the early part of the session.
Israel intensified airstrikes on Rafah, announcing plans to evacuate civilians from the southern Gazan city and initiate a comprehensive offensive, despite warnings from allies about potential mass casualties.
In conclusion, oil prices saw a positive uptick after two weeks of decline, buoyed by optimistic remarks on economic growth from a senior U.S. official and ongoing tensions in the Middle East.
Brent crude futures rose by 0.5% to $89.48 a barrel, while U.S. West Texas Intermediate crude futures increased by the same percentage to $84.01 a barrel.
Despite recent economic concerns, the potential for stronger GDP growth and easing inflation provided reassurance to investors. Moreover, geopolitical tensions in the Middle East added to supply concerns, further supporting oil prices.
