• Sat. Apr 20th, 2024

Global Oil Prices on the Rise: Concerns about Supply and Economic Growth Fuel Surge in Energy Markets

BySamantha Nguyen

Apr 4, 2024
Oil prices increase due to worries about reduced supply and indications of economic growth in the U.S.

The rise in oil prices on Thursday was due to concerns about lower supply and stronger economic growth in the U.S., the world’s largest oil consumer. Brent futures for June and U.S. West Texas Intermediate (WTI) futures for May both saw gains, with the June Brent contract and the May WTI contract rising for the past four days.

The uptick in oil prices can be attributed to various geopolitical factors, such as Ukraine’s attacks on Russian refineries affecting fuel supply and concerns about potential disruptions in the Middle East region due to the Israel-Hamas conflict. A meeting of top ministers from OPEC and its allies, including Russia, on Wednesday maintained the current supply policy and urged some countries to adhere to output cuts more strictly. Russia also announced a shift towards output restrictions rather than export curbs.

Federal Reserve Chair Jerome Powell’s cautious approach towards future interest rate hikes, citing strong job growth and inflation, was viewed positively for oil prices as it indicated robust economic growth in the U.S. In addition, Iran’s vow of retaliation against Israel for a recent attack further added to concerns about supply disruptions, as Iran is a significant producer within OPEC.

By Samantha Nguyen

As a content writer at newsskio.com, I weave words to craft compelling narratives that captivate readers and bring stories to life. With a keen eye for detail and a passion for storytelling, I strive to create engaging and informative content that resonates with our audience. Whether I'm delving into the latest news trends or exploring unique angles on various topics, my goal is to deliver quality content that informs, entertains, and inspires. Join me on this journey as we uncover the news stories that matter most.

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