Crude futures was seen rising on Friday as it heads for its first weekly gain in over month as the latest US economic reports boost the demand outlook in the US, the world’s largest oil consumer.
Meanwhile the ongoing conflict in Ukraine continues as the US and European nations blame Russia for the conflict.
Futures for the North American West Texas Intermediate (WTI) crude for October delivery added 56% cents to $95.08 per barrel on the New York Mercantile Exchange at the time of writing. This month, prices for the US benchmark crude have fallen by 3.2%, a second monthly loss.
Prices for the European benchmark Brent crude for October settlement traded 0.5% higher to $103.01 per barrel on the ICE Futures Europe exchange based in London. Brent crude is seen heading for a second monthly low, as the European benchmark crude fell to a 14-month low of $101.07 on August 19.
According to recent reports released, the world’s largest economy expanded more than forecasted in the second quarter. The US gross domestic product (GDP) climbed 4.2% at an annualized rate, compared to the previous forecast of 4%.
Free Reports:
Recent report released by the US Commerce Department showed that the world’s largest economy unexpectedly expanded in the second quarter. The US gross domestic product (GDP) jumped 4.2% at an annualized rate, accelerating from the previous estimate of 4%. Investment increased at an 8.1% annualized rate.
Forecasts from the International Energy Agency based in Paris shows that the US is expected to account for 21% of the global oil demand this year.
A crude stockpile report from the EIA, showed that gasoline supplied increased to 9.1 million barrels a day. The data also showed that gasoline use averaged 9.04 million barrels per day in the four weeks ending August 22.
The conflict in the eastern region of Ukraine continues, where over 2,000 lives has been claimed over the past five months and counting, according to the United Nations. Russia reportedly masterminded the counter attached, with more than 1,000 troops operating at the border of Ukraine to advice rebels, according to the North Atlantic Treaty Organization.
The American benchmark WTI crude is expected to climb in the coming weeks as the tension between Russia and Ukraine escalates, according to analysts.
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