Oil prices retreat on weak U.S. data, despite Trump tariff block
Oil prices retreated Thursday, handing back earlier gains after data showed the U.S. economy contracted in the first quarter, suggesting the Trump administration’s volatile trade policies were weighing on economic activity.
At 09:15 ET (13:15 GMT), Brent oil futures for July fell 0.7% to $63.89 a barrel, and West Texas Intermediate crude futures dropped 0.6% to $61.47 a barrel.
Oil was sitting on some gains this week after a devastating Russian attack on Ukraine sparked expectations of more U.S. sanctions, while the restriction of Chevron’s Venezuelan crude exports also pointed to tighter supplies.
But oil prices were still trading down sharply so far in 2025, as they were battered by concerns over weak demand and slowing economic growth.
Crude hit by U.S. growth contraction
The U.S. economy contracted in the first quarter, with gross domestic product showing a decline of 0.2% annualized in the January-March quarter, the BEA said in its second estimate of GDP.
The economy was initially estimated to have contracted at a 0.3% pace. It grew at a 2.4% rate in the fourth quarter.
Additionally, the number of Americans filing new applications for unemployment benefits increased more than expected last week, while the jobless rate appeared to have picked up in May as labor market conditions continue to ease.
Initial claims for state unemployment benefits rose 14,000 to a seasonally adjusted 240,000 for the week ended May 24, the Labor Department said on Thursday.
Source: Investing.com
