Oil prices gain following upward revision of US GDP

Brent crude oil price rose after the US Department of Commerce revised its GDP estimate upward for the third quarter.

PHOTO: An oil pump against the background of the US flag. Getty Images

Oil prices reacted positively to the news as it showed the country's economic growth in the third quarter of this year was better than previously estimated.

The US gross domestic product (GDP), a key indicator of demand growth and consumer spending activity, increased at an annualised rate of 3.1% in the July-September period, up from the initial estimate of 2.8%, the US Commerce Department’s Bureau of Economic Analysis (BEA) said.  

“Recent economic indicators have consistently surpassed expectations, and the latest data maintains this positive trend,” SPI Asset Management’s managing partner Stephen Innes said.

The increase primarily reflected growth in consumer spending, prompting market analysts to project a growth in crude oil demand in the world’s largest oil-consuming nation.

The market has observed a “bullish revision in GDP figures, emphasizing the ongoing strength and resilience of the [US] economic landscape,” Innes added.

By Aparupa Mazumder

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