Oil Gains on US Data Octane By Investing.com – Investing.com

Oil Gains on US Data Octane By Investing.com – Investing.com

© Reuters.

(adds settlement prices)

By Barani Krishnan

Investing.com - The good news for the week isn't over for the oil bull, and the market for crude is reflecting that.

Thursday's U.S. GDP reading for the first quarter came within expectations, adding octane to an oil rally that has boosted crude prices by nearly $3 per barrel or 5% from Monday's close.

U.S. Gross Domestic Product likely expanded by 6.4% in the first quarter, the Commerce Department said in the first of three quarterly readings for the economy. The market had expected a Q1 growth of 6.1%, according to Investing.com.

A weekly reading on U.S. employment benefits also showed a 2% decline in filings for last week after a 7% drop the previous week and a 25% plunge the week prior.

“The economy has been strengthening, helped by fiscal stimulus as well as an easing of COVID restrictions and fears, albeit not quite as much as implied,” TD Securities said in a note. 

The Commerce Department noted that the economy rebounded from a 4.3% growth in the previous quarter and especially after a surge in consumer spending helped by $1,400 Covid-relief checks sent out by the Treasury last month.