Oil edges lower but Brent shelves weekly gain on recovery hope

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Oil edges lower but Brent shelves weekly gain on recovery hope

On Friday, both UK and US crude oil futures closed out the session modestly lower, snapping up a four-day long streak of gains, but both benchmarks had secured weekly percentage gains amid scintillating signs of a solid economic recovery in the United States and China, easing off scepticisms about a third wave of pandemic outbreak on major G20 economies.

In point of fact, in the week’s modest rise in crude oil contracts’ prices was mostly meaded out of a flurry of upbeat economic data from the US and China, while China had reported a whopping 18.3 per cent increase in first-quarter GDP (Gross Domestic Products) and US retails sales soared to a 10-month peak in March, adding a gust of bullish wind on oil futures’ prices in the week.

Aside from that, US Labour Department had revealed that the number of Americans filing for first-time state unemployment benefits tumbled to the lowest level since March last year, suggesting a rapid recovery in labour market, while a survey data from the University of Michigan had unleashed that its index for US Consumer Confidence had perked up in April to a reading of 86.3, spurring up investors’ hope of a likely demand-surge in crude oil contracts in a near term.

Crude oil edges lower but reports weekly gain on robust economic data

Citing statistics, on Friday’s commodity market wind-down, UK crude futures’ prices pommelled 0.3 per cent to $66.77 per barrel, putting an end to a four-day long winning streak as beforementioned, while US WTI (West Texas Intermediate) crude oil futures’ prices fell 0.5 per cent to $63.13 per barrel.

On the week, Brent crude futures’ prices gained 0.6 per cent, though both benchmarks rose roughly 6 per cent last week. Meanwhile, since both 14-member OPEC (Organization of Petroleum Exporting Countries) and Paris-based IEA had raised their full-year forecasts for oil demands this week, referring to a raft of riant economic data published this week, a director of energy futures at Mizuho, Bob Yawger said, “Strong economic data, spurred by the Biden $1,400 stimulus check, is a huge positive development for the energy patch.