Oil prices surged over $1 on Thursday, buoyed by US economic data that eased concerns about an imminent recession in the world's largest economy. However, worries about subdued global demand tempered the upward momentum. Brent crude futures climbed $1.51, or 1.89 percent, to $81.27 a barrel by 1557 GMT, while US West Texas Intermediate crude futures gained $1.44, or 1.87 percent, to $78.42.
US retail sales in July exceeded expectations, and the number of Americans filing for unemployment benefits rose less than anticipated, according to recent data. "The positive news from US retail sales and unemployment claims invigorated the markets," commented Naeem Aslam of Zaye Capital Markets. Additionally, moderate US consumer price increases in July bolstered hopes that the Federal Reserve might lower interest rates next month, further supporting oil markets.
Concerns about Iran's possible reaction to the recent killing of Hamas leader Ismail Haniyeh and ongoing ceasefire negotiations in Doha also contributed to the price support. Moreover, the Russia-Ukraine conflict continued to exert upward pressure on prices, with Russia announcing plans to strengthen its border defenses and deploy additional forces.
Oil prices had dipped more than 1 percent on Wednesday following an unexpected rise in US crude inventories. US crude oil stockpiles increased by 1.4 million barrels for the week ending August 9, contrasting with forecasts for a 2.2 million barrel decrease. Additionally, China's factory output growth decelerated in July, and refinery output declined for the fourth consecutive month, highlighting the uneven nature of China's economic recovery and constraining gains in crude markets.
