Crude Oil Futures Rise on Thursday (April 25), as Market Weighs U.S. Economic Growth and Geopolitical Risks from Imminent Israeli Invasion of Rafah in Southern Gaza

U.S. GDP growth was much lower than forecast in Q1, reaching 1.6% compared to the 2.4% forecast by economists surveyed by Dow Jones.

Manish Raj, Managing Director at Velandera Energy Partners, stated, "The GDP data drove prices down at the start of the session, but investors realized that the oil market is tight and the situation in the Middle East remains uncertain."

"Investors are also closing their short positions after two weeks of volatile prices," Raj said.

In the Middle East, Israel is conducting airstrikes on Rafah as it prepares to attack the city, despite warnings from allies that such action would exacerbate the humanitarian crisis in Gaza.

At the end of the trading session on April 25, WTI crude futures rose by 76 cents (equivalent to 0.92%) to 83.57 USD/barrel. Brent crude futures increased by 99 cents (equivalent to 1.12%) to 89.01 USD/barrel.

Oil prices had fallen on April 24 as Goldman Sachs noted a slight decline in the market with global crude oil inventories rising.

According to analysts at Piper Sandler, crude oil futures have dropped 2.50 USD in geopolitical risk premiums since last week as tensions between Israel and Iran eased.

Oil prices are currently flat, but the downside risk seems quite limited, said Piper's analysts.

Piper also reduced the likelihood of a U.S. economic recession with low unemployment rates, stable sentiment, and a not-so-bad outlook. This means increasing oil demand as refineries operate closer to capacity and the addition of smaller capacities.

Source: Vietstock