Oil prices rose slightly on Friday, but are poised for a second consecutive weekly decline, as disappointing U.S. economic data and uncertainty about future interest rate rises increase concerns about future demand for fuel.
Brent crude futures climbed 14 cents or 0.18% to US$78.51 a barrel as of 10.31 A.M. Bangkok time. Meanwhile, U.S. West Texas Intermediate (WTI) crude was up 17 cents, or 0.23%, at $74.93 a barrel.
Brent is expected to drop by 3.8% this week and 9.1% over the past two weeks, while WTI will likely decline by 3.8% this week, bringing the total drop over the past two weeks to 9.4%.
Gross domestic product in the United States grew by 1.1% in the first quarter of 2023, said the Commerce Department on Thursday, far lower than economists had predicted.
The result was down from a 2.6% pace in the last three months of 2022, but it was a third consecutive quarter of growth after output declined in the first half of last year.
Data indicated that unemployment claims declined for the week ending April 22, despite the first-quarter economic growth in the US was less than predicted.
Potential interest rate hikes by inflation-fighting central banks are also a source of concern for investors since this could dampen economic growth and reduce energy demand in the US, the UK, and the European Union.
Rate hikes are anticipated at the upcoming meetings of the Federal Reserve, the Bank of England, and the European Central Bank.
On Thursday, Russian Deputy Prime Minister Alexander Novak said the OPEC+ group did not see the need for further output cuts despite lower-than-expected Chinese demand, but could change policy if needed.
Oil prices climbed this month after OPEC and its allies, known as OPEC+, agreed to cut 1.16 million barrels per day.
The Energy Information Administration reported earlier this week that US crude oil and gasoline stockpiles declined more than expected last week due to rising demand ahead of the summer driving season.
