Georgina McCartney
(Reuters) – Oil prices rose in early trading on Friday. Participants echoed comments from the U.S. Treasury secretary that the country's economy was likely in a stronger position than weak first-quarter data indicated, as well as supply concerns amid ongoing conflict at home. middle east.
At 1211 GMT, Brent crude futures were up 34 cents, or 0.38%, at $89.35 a barrel, and US West Texas Intermediate crude futures were up 33 cents, or 0.39%, at $89.35 a barrel. = 83.90 dollars.
Treasury Secretary Janet Yellen told Reuters on Thursday that U.S. economic growth was likely stronger than weaker-than-expected quarterly data suggested.
Yellen said first-quarter U.S. GDP growth could be revised upward as more data becomes available and that a series of “unusual” factors meant the economy remained at its lowest level in nearly two years. After that, he said, inflation would fall to more normal levels.
Data showed economic growth slowed in the first quarter, and before Yellen's remarks, investors had calculated that the Federal Reserve would not cut interest rates by September. , turmoil caused by accelerating inflation was weighing on oil prices.
Personal consumption expenditure (PCE) inflation data for March will be released on Friday, with the Fed tracking closely toward its 2% target.
Elsewhere, supply concerns also pushed prices higher in early trading amid continued geopolitical tensions in the Middle East.
Israel stepped up airstrikes on Rafah after evacuating civilians from the southern Gaza city and announcing it would launch an all-out offensive, despite allied warnings that there could be heavy casualties.
(Reporting by Georgina McCartney in Houston; Editing by Leslie Adler)
