Oil prices edge down today but are heading for another weekly rise

Oil prices are edging down today, but remain on track for a fifth consecutive weekly gain. North Sea Brent crude was down around 0.3 percent at around 17:00 CEST, trading close to $84 a barrel. US light crude West Texas Intermediate (WTI) was also down around 0.3 percent, trading slightly below $80 a barrel. However, Brent and WTI have both gained more than three percent since the start of the week.

Recent increases in oil prices have been driven by limited supplies of crude on the market and investor optimism about the outlook for demand. The outlook for the global economy and worldwide demand for fuels is being supported by expectations that the US Federal Reserve (Fed) and the European Central Bank (ECB) are nearing the end of their interest rate hikes.

Optimism about oil demand was also bolstered by Thursday’s report that US gross domestic product (GDP) growth accelerated to 2.4 percent in the second quarter, up from two percent in the first quarter. The figures strengthened hopes that the US economy can avoid a recession. The US is the world’s largest oil consumer.