US economic report fails to support oil

Oil prices moved lower after the US Department of Commerce released its GDP estimate for the fourth quarter of last year.

IMAGE: Getty Images

The US' gross domestic product (GDP), a key indicator of demand growth and consumer spending activity, increased at an annualised rate of 1.4% in the October–December period of 2025, according to the US Commerce Department’s Bureau of Economic Analysis (BEA).

The oil market did not react positively to the news, as the country's fourth quarter (2025) GDP grew at a slower pace after recording a 4.4% expansion in the third quarter.

“Imports, which are a subtraction in the calculation of GDP, decreased,” the BEA said.

The data has dampened market expectations of economic progress in the US, which could weigh on demand growth for commodities such as crude oil.

By Aparupa Mazumder

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