US Growth Hopes Boost Oil Prices

16 Aug 2024 , 11:14 AM

Oil prices fell in early Asian trade on Friday, but the market’s benchmarks remained poised for a second straight weekly increase after positive U.S. economic data alleviated investor concerns about a looming recession in the world’s largest oil consumer.

Brent crude futures slid 16 cents, or 0.2%, to $80.88 a barrel. United States West Texas Intermediate crude futures slipped 23 cents, or 0.3%, to $77.93 per barrel.

Brent was expected to rise 1.6% week on week, while WTI was expected to rise around 1.5%.

Following a slew of data releases this week, investors found fresh hope in the United States’ economic development.

A government report released on Thursday indicated that retail sales in the United States increased by 1% last month, much exceeding market expectations of a 0.3% increase. Also on Thursday, data indicated that fewer Americans applied for jobless benefits last week.

They stated that oil markets will now shift their whole focus to fundamentals and geopolitics, with markets anticipating retaliation assaults from Iran against Israel in response to the execution of a Hamas commander in Tehran.

A new round of negotiations to secure a ceasefire in the Gaza war began on Thursday, as Israeli troops maintained their assault on the Palestinian territory.

The discussions, which Hamas has boycotted, have been prolonged and will resume in Qatar’s capital Doha on Friday.

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