Energy
Thursday, April 25th, 2024 3:50 pm EDT
Key Points
- U.S. economic growth in the first quarter disappointed, with GDP coming in at 1.6% compared to the expected 2.4%, leading to concerns about its impact on crude oil demand.
- Following the economic news, crude oil futures experienced a pullback, turning negative after initially rising during the session.
- Current energy prices include declines in West Texas Intermediate (WTI) and Brent crude oil contracts, alongside decreases in RBOB Gasoline and Natural Gas contracts, reflecting market reactions to the economic data. Additionally, recent trends in oil prices, geopolitical factors, and analysts’ assessments of downside risks are noted in the article.
Crude oil futures experienced a decline on Thursday following disappointing U.S. economic growth figures, which fell short of expectations. Gross domestic product (GDP) for the first quarter came in at 1.6% on an annualized basis, compared to the anticipated 2.4% projected by economists surveyed by Dow Jones. This softer economic performance raised concerns about crude oil demand, leading prices to turn negative after an initial uptick earlier in the day. West Texas Intermediate (WTI) crude oil for the June contract settled at $82.45 a barrel, down 36 cents or 0.43%, while the global benchmark, Brent crude, for the June contract closed at $87.62 a barrel, down 40 cents or 0.45%. Despite these declines, year-to-date gains have been notable, with U.S. oil up approximately 15% and Brent up about 14%. Additionally, RBOB Gasoline for the May contract stood at $2.72 a gallon, down 0.36%, while natural gas for the May contract was at $1.62 per 1,000 cubic feet, down 1.63%. Analysts noted that oil prices closed lower the previous day as Goldman Sachs took a slightly bearish stance, foreseeing rising global inventories. Despite this, U.S. crude experienced a modest decrease of about 1% for the week, contrasting with Brent’s slight increase of 0.3%. Geopolitical tensions between Israel and Iran have somewhat eased, resulting in a $2.50 reduction in the geopolitical risk premium in crude oil futures since the previous week. While oil prices are presently moving sideways, analysts believe that downside risks remain limited, offering a cautious outlook for the market’s trajectory.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/04/25/crude-oil-prices-today.html
