Oil price gain in early trading today

26 Apr 2024 , 06:20 PM

U.S. West Texas Intermediate crude futures increased by 33 cents, or 0.39%, to $83.90 a barrel, while Brent crude futures gained 34 cents, or 0.38%, to $89.35 a barrel.

On Thursday, Treasury Secretary Janet Yellen told Reuters that the United States' economic growth was probably stronger than indicated by the quarterly statistics that was less than anticipated.

Yellen stated that a number of "peculiar" circumstances kept the economy to its lowest showing in almost two years, and that further data will allow for a revision of the U.S. GDP growth estimate for the first quarter. Additionally, she stated that inflation will fall back to more normal levels.

First-quarter data indicated a slowdown in economic growth, and even before Yellen's remarks, investors were pricing in an acceleration of inflation as a reason to believe that the Federal Reserve would not lower interest rates before September.

On Friday, March personal consumption expenditures (PCE) inflation data will be released, which it will be closely monitoring in order to meet the Fed's 2% objective.

Earlier in the session, prices were also supported by supply fears related to the ongoing geopolitical tensions in the Middle East.

After declaring it would evacuate inhabitants from the southern Gazan city of Rafah and begin an all-out assault despite warnings from allies that this could result in mass casualties, Israel increased its airstrikes on the city.

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