Oil Prices Rise Amid Economic Optimism and Middle East Tensions
Economic Outlook and Price Movement
Oil prices experienced a notable rise on Friday, marking a potential positive end to the week following two consecutive weeks of losses. Brent crude futures surged by 47 cents, reaching $89.48 a barrel, while U.S. West Texas Intermediate crude futures saw a similar increase of 44 cents, reaching $84.01 a barrel.
Weekly Performance
Throughout the week, Brent crude has shown a gain of 2.4%, whereas WTI has seen a more modest increase of 0.9%.
Optimistic Economic Forecasts
Treasury Secretary Janet Yellen expressed optimism regarding U.S. economic growth prospects in an interview with Reuters on Thursday. Yellen suggested that the first-quarter GDP growth could be revised upward, attributing the previous slowdown to temporary factors. She also anticipated a moderation in inflation levels, providing a positive outlook for the economy.
Impact of Economic Data and Federal Reserve Speculations
Before Yellen's comments, concerns arose over the sluggish economic growth reflected in the first-quarter data. Investors speculated on the Federal Reserve's stance, particularly in response to increasing inflation. These speculations influenced oil prices, with some predicting that interest rates would remain unchanged until September.
Middle East Tensions and Supply Concerns
Tensions in the Middle East continued to impact oil markets. Israel intensified air strikes on Rafah, Gaza, despite warnings from allies about potential mass casualties. The ongoing conflict raised concerns about oil supply disruptions in the region, contributing to the upward pressure on prices.
