Oil prices increase on positive US economic data

Oil prices rose during the week ending June 30 due to optimism about US economic growth and concern about potential supply disruptions caused by the paramilitary Wagner Group's "attempted armed rebellion" against the Russian government.

International benchmark Brent crude was trading at $74.52 per barrel at 2.03 p.m. (1103GMT) on Friday, up 1.69% from the previous week's closing price of $73.28 per barrel.

The American benchmark West Texas Intermediate (WTI) traded at $69.81 per barrel at the same time, posting a 1.82% climb from last Friday's session that closed at $68.56 a barrel.

At the beginning of the week, oil prices increased oversupply uncertainties caused by the Wagner Group's "attempted armed rebellion" against Moscow.

Although the attempt did not disrupt Russian oil production or supply, markets continued to price the risks and possible consequences of the group’s rebellion.

Oil prices rose further on Wednesday after positive US data revealed that crude stockpiles fell dramatically, indicating an improvement in the country's demand situation.

Despite recession fears in the US, the world's largest oil consumer, economic data indicating that the country's economy has maintained its resilience has bolstered the US oil demand outlook, supporting further price increases.

Prices were supported timidly by US economic growth in the first quarter of 2023, which was revised up to 2%, according to the Commerce Department's third and final reading released earlier on Thursday. While the second reading announced last month stood at 1.3%, the first reading released in April was 1.1%.

On the other hand, US Federal Reserve Chair Jerome Powell said on Thursday that he anticipates further monetary policy constraints will be implemented, and that "nearly all FOMC (Federal Open Market Committee) participants expect that it will be appropriate to raise interest rates again this year, and perhaps twice."

Meanwhile, European Central Bank President Christine Lagarde has ruled out the possibility of putting an end to interest rate increases anytime soon.

Oil prices were restrained by China's manufacturing activity contracting for the third month in a row in June, according to China's National Bureau of Statistics data on Friday.