Oil leaps forward, riding strong data and momentum for a third consecutive day

Crude Oil Keeps Climbing – Third Day in a Row!

Brent and West Texas Intermediate have both pushed higher for the third consecutive day, with Brent up 0.35% and WTI climbing 0.56%. Those gains mean the two major benchmarks hit their strongest levels in a whole week. The markets are buzzing, but the big question remains: Why are prices rising when there’s barely any exciting data to back it up?

What’s Driving the Surge?

Most recent economy reports, especially from the U.S., point to a steady expansion—so the economy’s still warm.
However, the data also spiked concerns that interest rates might stay higher for longer. That rang a bell for oil investors.
The CME FedWatch tool indicates that hopes for rate cuts in September and November have taken a dip thanks to the upbeat data and Fed officials’ statements.

In short, while the U.S. markets had a holiday break, the lingering fear of a prolonged rate hike keeps oil on an upward trend.

This Week’s Economic Snapshot

US GDP: The advance reading is being trimmed from 1.6% in Q1 to 1.3%, a clear slowdown from the 3.4% growth last quarter.
Unemployment Claims: Expect a small uptick in the weekly reports.
Home Sales: Pending sales likely stay flat for April.
China Manufacturing: Slight growth still on the horizon.
Crude Inventories: Pending withdrawals might rebound in the U.S.
Core PCE: The annual figure should cling at 2.8%, with monthly pace easing from 0.3% to 0.2%.

OPEC+ and the Gearshift Ahead

Next week’s big headline will be the OPEC+ decision. Current production quotas are likely to stay on track, but the surplus supply—especially from Iran’s ramp‑up—could keep prices under pressure. The group’s actions may not be enough to cement the gains.

Geopolitics: Still a Calm Waters?

At the moment, there’s no fresh spark that could stir a regional conflict. While tensions between Israel and Egypt are heating up, it looks unlikely to trigger a widespread war that would send oil prices into overdrive. The market stays cautious, but not alarmed.