Oil prices rebound amid geopolitical tensions and strong US economic data
Adding to the bullish sentiment, US economic data released on Tuesday showed a robust performance. Retail sales in July exceeded expectations, indicating strong consumer spending while consumer prices rose moderately during the same period.
Oil prices rebounded on Wednesday after a two-day decline, driven by heightened geopolitical tensions and a stronger-than-expected US economic reading, despite ongoing concerns about global demand.
Brent climbed by $1.28, or 1.6%, to settle at $81.04/barrel
WTI increased by $1.18, or 1.53%, to $78.16/barrel.
Market jitters intensified over a possible Iranian attack on Israel, which fueled fears of supply disruptions in a region critical to global oil production and transport.
Adding to the bullish sentiment, US economic data released on Tuesday showed a robust performance. Retail sales in July exceeded expectations, indicating strong consumer spending while consumer prices rose moderately during the same period. These figures reinforced the belief that the Federal Reserve may cut interest rates next month, a move that could stimulate economic activity and, in turn, increase oil consumption.
Written by: Rochelle Nguyen