Oil prices were poised for a second consecutive week of gains, even as they edged lower on Friday. The recent U.S. economic data has fueled optimism over demand in the world’s largest oil consumer. Brent crude futures were on track for a 1.3% weekly increase, while U.S. West Texas Intermediate (WTI) crude futures had risen by about 1.2% for the week.
By 0528 GMT on Friday, Brent crude had slipped by 30 cents, or 0.4%, to $80.74 per barrel, while WTI fell by 40 cents, or 0.5%, to $77.76 per barrel. The dip on Friday followed a surge in prices earlier in the week, spurred by robust U.S. retail sales data on Thursday that exceeded analysts’ expectations. Additionally, fewer Americans filed new applications for unemployment benefits last week, further boosting confidence in U.S. economic growth.
“Crude oil reversed recent losses as positive economic data and supply-side concerns boosted investor sentiment,” analysts at ANZ Research commented. Analysts at consultancy FGE noted that the focus of oil markets would now shift back to geopolitics, particularly amid warnings of potential retaliatory attacks from Iran against Israel following the killing of a Hamas leader in Tehran.
The combination of strong economic indicators and geopolitical tensions is keeping the oil markets on edge, with investors closely monitoring developments that could impact supply and demand dynamics in the coming weeks.
