Market Analysis

Oil prices increased on Friday, poised to finish the week higher after two consecutive weeks of decline. This uptick came as a senior U.S. official expressed confidence in economic growth, while worries over supply persisted due to ongoing conflicts in the Middle East.

Brent crude futures climbed 0.5%, reaching $89.48 a barrel at 0640 GMT, while U.S. West Texas Intermediate crude futures saw a similar rise of 0.5% to hit $84.01 a barrel.

Throughout the week, Brent has seen a 2.4% increase, while WTI has risen by 0.9%.

Treasury Secretary Janet Yellen, in an interview with Reuters on Thursday, suggested that the U.S. GDP growth for the first quarter might be revised upwards. She also mentioned that inflation is expected to ease after certain unusual factors affected the economy, which recorded its weakest performance in nearly two years.

Yellen indicated that the actual U.S. economic growth might have been stronger than indicated by the weaker-than-anticipated quarterly data.

Prior to Yellen's remarks, concerns over inflation acceleration had weighed on oil prices, as investors speculated that the Federal Reserve would postpone interest rate cuts until September.

Additionally, ongoing tensions in the Middle East continued to drive supply concerns, contributing to the early session boost in prices. Israel intensified airstrikes on Rafah after announcing plans to evacuate civilians from the southern Gazan city and initiate a full-scale assault, despite warnings from allies about potential mass casualties.

Paraphrasing text from "Reuters" all rights reserved by the original author.