By Adedapo Adesanya
Crude oil prices appreciated on Thursday after US economic data eased fears of a recession in the world’s biggest economy, with Brent up by $1.28 or 1.6 per cent to $81.04 per barrel and the US West Texas Intermediate (WTI) crude futures rising by $1.18 or 1.53 per cent to $78.16 a barrel.
Data showed US retail sales rose more than expected in July.
Another report showed a smaller-than-expected increase in the number of Americans filing for unemployment benefits.
This is another piece of data proving that the world’s largest oil producer is exhibiting stronger economic outcomes as data from the US Labor Department on Wednesday showed US consumer prices rose moderately in July.
This reinforced expectations that the US Federal Reserve will cut interest rates next month, which could boost economic activity and oil consumption.
Oil prices previously drew support from worries about how Iran would respond to the killing of the leader of the Palestinian militant group Hamas last month but the Joe Biden administration suggested that a Gaza ceasefire deal could halt an Iranian attack on Israel.
New Gaza ceasefire talks commenced on Thursday in Doha, Qatar–but without Hamas in attendance.
As the Gaza death toll reaches 40,000, with another 90,000 people injured, Israeli intelligence is meeting behind closed doors with US and Egyptian intelligence and the prime minister of Qatar.
The Russia-Ukraine conflict also kept prices elevated as Ukraine made the biggest attack on Russia since World War Two.
Russia said on Thursday it would beef up border defences, improve command and control and send in additional force.
On the fundamentals side, the US Energy Information Administration (EIA) on Wednesday reported a 1.4 billion barrels increase in stockpiles for the week ended August 9, compared to a 3.7-million-barrel drawdown from the previous week. The EIA report came a day after the American Petroleum Institute (API) reported a 5.2 million barrels draw in stockpiles.
China’s factory output growth slowed in July, while refinery output fell for a fourth month, underscoring the country’s spotty economic recovery and limiting the upside for crude markets on Thursday.
Modupe Gbadeyanka