Crude Oil Price Update-WTI Rises on Signs of US Economy Growing

Oil futures rebounded in New York, after going for the biggest weekly slump in 2008. WTI crude futures increased by 1.85 percent to be priced at USD $ 98.98 a barrel, while Brent crude futures rose by 1.56 percent to USD $ 110.83 a barrel.

Oil futures rose in New York after it became apparent that previous concerns about the US economy not recovering at a healthy pace were over exaggerated. Date released by the US Labour Department showed that payrolls expanded in April by more than their forecasted figure. This provided evidence that the US economy was successfully weathering the higher global oil prices, raising speculation about the demand of oil increasing. The Commerce Department shall release figures for retail sales this week. It is expected that retail sales increased in April by 0.6 percent. Both of these factors are expected to lead a steady recovery of oil prices back from the dramatic slump it fell in last week.

Brent crude futures have risen this year by almost 17 percent on account of unrest in the Middle East, which has led to fears about supply disruptions. The increase in Brent futures was because of security forces in Syria and Yemen clashing with protestors, while sectarian clashes in Egypt claimed 12 lives.