Fundamental Comment

Oil prices rebound as US data eases recession fears

Oil prices rebound as US data eases recession fears

Oil prices rose during Friday's trading, set for a weekly gain, driven by positive U.S. economic data, ahead of the disclosure of crude oil rigs data. 

As of 08:45 GMT, benchmark Brent crude futures for October delivery surged 1.36 percent to $59.03 a barrel. 

West Texas crude oil futures for September were trading at $55.25 per barrel, rising 1.45 percent. 

U.S. retail sales data yesterday supported crude prices, as it showed a 0.7 percent soar in July, while forecasts were in favor of a 0.3 percent increase. 

The upbeat report eased recession fears in the world’s biggest economy and thereby lowered concerns regarding oil demand.

Despite today's gains in oil prices, traders remain cautious as the trade war between China and the United States showed signs of escalation.

In a short statement issued Thursday, China said it should take countermeasures for the latest U.S. tariffs on $300 billion worth of Chinese goods.

Beijing said the US tariffs violate the consensus reached by the leaders of the two countries in a bid to resolve their disputes through negotiation. 

U.S. President Donald Trump said on Thursday that the US-China trade deal has to be done “on our terms.”

Over the course of Wednesday and Thursday, oil prices recorded losses of 3 percent and 1.4 percent, respectively.

The fall in the price of crude came amid concerns related to economic growth prospects, with a number of countries revealing growth and economic activity data in the month and quarter and showing a decline in performance. 

OPEC is scheduled to announce monthly production data for July later in the day, while Baker Hughes is also scheduled to announce U.S. rig count for the week.  

The dollar index has recovered nearly 0.15 percent against a basket of six major currencies, as it rose to 98.157 to resume recovery since hitting a three-week low on August 9.

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