Oil Prices Rise On Signs Of Increased US Demand

ISTANBUL: Oil prices rose on Friday, driven by stronger-than-expected US economic growth, signalling greater oil demand, reported Anadolu.

International benchmark Brent crude traded at US$82.49 per barrel at 09.32 am local time (0632 GMT), an increase of 0.15 per cent from the closing price of US$82.37 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at US$78.39 per barrel at the same time, a 0.14 per cent rise from the previous session that closed at US$78.28 per barrel.

The US economy expanded 2.8 per cent in the second quarter of 2024, according to the Commerce Department’s first advance reading released Thursday. The figure came much higher than market estimates of 2 per cent.

The American economy expanded by 1.4 per cent in the first quarter of 2024.

The current dollar GDP increased 5.2 per cent at an annual rate, or US$360 billion, in the second quarter to reach US$28.63 trillion, the Commerce Department said in a statement. In the first quarter, GDP rose 4.5 per cent, or US$312.2 billion, it added.

The data also sparked increased optimism over a potential interest rate cut by the US Federal Reserve in September.

However, gains were weak as prices continued to be depressed by slower-than-expected economic growth data in China.

China’s gross domestic product (GDP) rose by 4.7 per cent in the second quarter of 2024, below market expectations, according to official data.

The data prompted concerns about oil demand in the world’s largest crude oil importer. Demand worries were also supported by figures showing a softness in oil imports.

Uncertainty over the country’s oil demand fuels market players’ fears that imports and refining activity could also remain low. – Bernama, Anadolu