A sunset view of an oil well in action at the Elk Hills Oil Field in California, United States highlights the rising gas prices on April 14, 2024. Crude oil futures experienced a pullback on Thursday following disappointing U.S. economic growth figures. Gross domestic product came in much softer than expected in the first quarter at 1.6% on an annualized basis compared to the 2.4% predicted by economists. Slower economic growth can have an impact on crude oil demand, leading to negative price movements after an earlier session increase.
Today’s energy prices show West Texas Intermediate June contract at $82.45 a barrel, down 0.43%, and Brent June contract at $87.62 a barrel, down 0.45%. RBOB Gasoline May contract is at $2.72 a gallon, down 0.36%, while Natural Gas May contract is at $1.62 per 1,000 cubic feet, down 1.63%. Oil prices closed lower on Wednesday with Goldman Sachs predicting a slightly bearish market due to rising global inventories.
Crude oil futures have seen a decrease in geopolitical risk premium, shedding $2.50 since last week as tensions between Israel and Iran have eased. Analysts believe that oil prices are currently moving sideways with limited downside risk. Piper Sandler, in a research note to clients, mentioned reduced odds of a U.S. recession with low unemployment rates and growing demand for oil. Refiners are running closer to capacity with fewer capacity additions, indicating a positive outlook for the oil industry.