Oil prices saw an increase on Friday, indicating a potential positive end to the week following two consecutive weeks of losses. The rise was influenced by an optimistic statement from a prominent U.S. official regarding economic growth, as well as ongoing supply concerns due to conflicts in the Middle East.
At 03:47 GMT, Brent crude futures saw a gain of 31 cents, equivalent to 0.4 percent, reaching $89.32 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude futures rose by 23 cents, or 0.3 percent, reaching $83.80 per barrel.
Throughout the week, Brent has shown an overall increase of 2.3 percent, while WTI has experienced a more modest rise of 0.8 percent.
Read more: Oil prices experience minor decline amid easing Middle East tensions
Treasury Secretary Janet Yellen, in an interview with Reuters on Thursday, expressed the possibility of revising U.S. GDP growth for the first quarter to higher levels. Additionally, she stated that inflation would ease after being affected by various unusual factors, which contributed to the weakest performance of the economy in nearly two years. Yellen suggested that the weaker-than-expected quarterly data may underestimate the actual strength of U.S. economic growth.
Prior to Yellen’s comments, concerns about inflation had caused fluctuations in oil prices. Investors had speculated that the Federal Reserve would delay interest rate cuts until September. However, Yellen’s statements helped alleviate these concerns.
According to the Bureau of Economic Analysis at the Commerce Department, the last quarter saw an annualized increase in GDP of 1.6 percent, marking the slowest growth rate since the second quarter of 2022. Economists surveyed by Reuters had predicted a higher growth rate of 2.4 percent, with estimates ranging from 1.0 percent to 3.1 percent.
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In the previous quarter, the economy experienced a growth rate of 3.4 percent. However, the growth rate observed in the first quarter was below the non-inflationary growth rate of 1.8 percent that U.S. central bank officials consider ideal.
Furthermore, ongoing geopolitical tensions in the Middle East continued to contribute to supply concerns, further bolstering oil prices during the early session.
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