Oil prices experienced an upward trajectory on Friday, poised to conclude the week with gains following two consecutive weeks of losses. The surge came after a top U.S. official expressed optimism regarding economic growth, coupled with lingering supply concerns due to conflicts in the Middle East.
Brent crude futures saw an increase of 31 cents, or 0.4%, reaching $89.32 a barrel by 0347 GMT, while U.S. West Texas Intermediate crude futures rose by 23 cents, or 0.3%, to $83.80 a barrel. Over the course of the week, Brent has surged by 2.3%, while WTI has climbed by 0.8%.
Treasury Secretary Janet Yellen’s remarks to Reuters on Thursday contributed to the positive sentiment, as she indicated that U.S. GDP growth for the first quarter could be revised higher and anticipated a decrease in inflation. Yellen highlighted that peculiar factors had previously constrained economic performance, but U.S. economic growth was likely stronger than initially suggested by weaker-than-expected quarterly data.
Prior to Yellen’s comments, concerns surrounding an acceleration in inflation had weighed on oil prices, with investors speculating on the Federal Reserve’s interest rate decisions. However, her remarks provided reassurance, alleviating some of the pressure on oil markets.
Meanwhile, geopolitical tensions in the Middle East continued to fuel supply concerns, further supporting oil prices during the session.
As markets await further economic data and monitor geopolitical developments, the positive outlook expressed by Yellen and ongoing supply concerns have contributed to the upward momentum in oil prices, offering a reprieve after recent losses.
