Oil up over signals of greater demand in US

By Firdevs Yuksel

ISTANBUL (AA) - Oil prices increased on Friday over signals of greater oil demand supported by data showing that the US economy had grown faster than expected.

International benchmark Brent crude traded at $82.49 per barrel at 09.32 a.m. local time (0632 GMT), an increase of 0.15% from the closing price of $82.37 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $78.39 per barrel at the same time, a 0.14% rise from the previous session that closed at $78.28 per barrel.

The US economy expanded 2.8% in the second quarter of 2024, according to the Commerce Department's first advance reading released Thursday. The figure came much higher than market estimates of 2%.

The American economy expanded by 1.4% in the first quarter of 2024.

The current dollar GDP increased 5.2% at an annual rate, or $360 billion, in the second quarter to reach $28.63 trillion, the Commerce Department said in a statement. In the first quarter, GDP rose 4.5%, or $312.2 billion, it added.

The data also sparked increased optimism over a potential interest rate cut by the US Federal Reserve in September.

However, gains were weak as prices continued to be depressed by slower-than-expected economic growth data in China.

China's gross domestic product (GDP) rose by 4.7% in the second quarter of 2024, below market expectations, according to official data.

The data prompted concerns about oil demand in the world's largest crude oil importer. Demand worries were also supported by figures showing a softness in oil imports.

Uncertainty over the country's oil demand fuels market players’ fears that imports and refining activity could also remain low.