US economic report supports oil

Oil prices have gained after the US Department of Commerce released its GDP estimate for the third quarter of this year.

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The US' gross domestic product (GDP), a key indicator of demand growth and consumer spending activity, increased at an annualised rate of 4.3% in the July–September period, according to the US Commerce Department’s Bureau of Economic Analysis (BEA).

The oil market has reacted positively to the news as the country's third quarter GDP gained after noting a 3.8% expansion in the second quarter of this year.

“The increase in real GDP in the third quarter reflected increases in consumer spending, exports, and government spending,” the BEA said.

The data has boosted market expectations of economic progress in the US, which could in turn support demand growth for commodities like crude oil.

By Aparupa Mazumder

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