On Friday, oil prices increased in early trading as market participants responded to statements from U.S. Treasury Secretary Janet Yellen that the country’s economy may be stronger than suggested by weak first-quarter data. Additionally, ongoing supply concerns due to conflicts in the Middle East also contributed to this rise.
Brent crude futures rose by 34 cents to $89.35 a barrel, while U.S. West Texas Intermediate crude futures increased by 33 cents to $83.90 a barrel at 1211 GMT. Yellen mentioned to Reuters that U.S economic growth could be stronger than indicated by the latest quarter’s data, with first-quarter GDP growth potentially being revised upwards once more data is available and inflation expected to return to normal levels after several unusual factors affected the economy leading to its weakest performance in almost two years.
Furthermore, market participants are awaiting the release of Personal Consumption Expenditures (PCE) inflation data for March, which is a key indicator closely monitored by the Fed to gauge progress towards its 2% target. Geopolitical tensions in the Middle East have also supported oil prices, with heightened conflicts leading to supply concerns such as Israel intensifying airstrikes in Rafah and announcing plans to evacuate civilians from the city despite warnings from allies about potential mass casualties.
Overall, these various factors have contributed to the rise in oil prices in early trading on Friday, demonstrating how complex global events can influence commodity markets like oil prices