Oil prices extend gains after strong US growth data

Global Oil Prices

Global oil prices extended their gains in American trade on Thursday and hit one-week highs while on track to retest four-month highs following strong US growth data.

US GDP Data

• Recent data showed US GDP growth at 3.4% in the fourth quarter of 2023, beating expectations of 3.2%.
• The data bodes well for US demand on fuel, and showcases the resilience of the US economy despite higher interest rates.

Oil Prices

• US crude rose 1.3% to $82.68, a one-week high, while Brent added 1.1% to $80.60 a barrel, with a session-low at $85.52.
• US crude rose 0.5% on Wednesday, while Brent added 0.4% away from recent two-week lows.

US Crude Stocks

• The Energy Information Administration reported a buildup of 3.2 million barrels in US crude stocks last week, while analysts expected a drop of 1.2 million barrels.
• Gasoline stocks rose 1.3 million barrels to 232.1 million barrels, while distillate stocks fell 1.2 million barrels to 117.3 million barrels.

US Crude Production

The EIA also reported no change in US crude production last week at 13.1 million bpd.

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