Oil rallies after U.S. GDP growth eases recession, demand concerns

Oil held onto gains even as Wall Street fluctuated after U.S. economic data showed an economic rebound last quarter, easing recession fears and bolstering the demand outlook.

West Texas Intermediate futures traded as high as US$89.79 after U.S. government estimates showed gross domestic product growth at a 2.6 per cent annualized rate. The uptick brightens the demand outlook for crude as it eases recession concerns prompted by a falling GDP for the first two quarters of this year.

“This GDP number is solid, just solid,” said John Kilduff, founding partner at Again Capital. “A lot of folks were trying to make a recession call and it’s obvious that we’re not in it.”