Ammon – Oil prices are heading towards a monthly decline, despite its rise in Friday trading, after disappointing US economic data and uncertainty about increasing interest rates affected demand expectations.
Thursday’s data showed that US economic growth slowed more than expected in the first quarter, but jobless claims fell in the week ending April 22.
And by 17:12 GMT, Brent crude futures for June delivery rose by $ 1.10, or 1.40 percent, to $ 79.47 a barrel. These contracts expire on Friday.
Brent prices recovered earlier losses after data showed that the euro zone returned to growth in the first quarter, albeit modestly and slower than expected.
And US West Texas crude rose by $ 1.50, or 2.01 percent, to $ 76.26 a barrel.
Investors also fear that interest rate increases that central banks may introduce in the framework of combating inflation may slow economic growth and weaken energy demand in the United States, Britain and the European Union.
The US Federal Reserve, the Bank of England and the European Central Bank are expected to raise interest rates at their next meetings.
The US Federal Reserve meets on the second and third of May.
On the supply side, Russian Deputy Prime Minister Alexander Novak said yesterday, Thursday, that the “OPEC +” alliance does not see a need for an additional reduction in oil production, despite the fact that Chinese demand was less than expected, but he added that the group is always able to adjust its policy if necessary.
The OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries and allies including Russia, announced this month a total production cut of about 1.16 million barrels per day.
The market rebounded after the OPEC + announcement, but later retreated due to fears of a recession and its impact on demand.
Sky News Arabia