United States

Submitted by Gregory Brew via OilPrice.com,

On Thursday Brent crude rose above $50 while the WTI rose to $49.85. The rise in prices came after the EIA reported a dramatic fall in U.S. inventories. The weekly drop of 4.2 million barrels, far more than the 2 million that was expected, triggered a sharp rise in a market which had been growing increasingly bullish, sending the Brent price above $50 on Thursday morning. It is the first time in seven months that the price has reached this level.

Following the terrible initial Q1 GDP print of 0.5% released one month ago, there was some hope that following some subsequent favorable inventory and trade data, the number would be revised substantially higher, with the whisper estimate rising as high as 1% or more, above the consensus estimate of 0.9%. Moments ago the BEA reported that in its first revision of Q1 growth, the US economy grew at only 0.8% annualized, a modest rebound from the original GDP report, however still missing consensus estimates.

Ealier today, Barack Obama became the first sitting US president to visit the memorial of the American atomic bombings of Japan in Hiroshima, however without offering no apology for the attacks. The trip comes amid Japanese protests over alleged crimes committed by US troops stationed in Japan.

"We have a shared responsibility to look directly in the eye of history. We must ask what we must do differently to curb such suffering again," Obama said in a speech at the memorial. Some of the speech highlights:

• Oil prices ease from seven-month high to below $49 (Reuters)
• Wall Street Waits for Yellen Before Taking Off for a Long Weekend (BBG)
• Donald Trump Celebrates Clinching GOP Delegate Race (WSJ)
• Trump vows to undo Obama's climate agenda in appeal to oil sector (Reuters)
• Japan Fails in Bid to Have G-7 Warn of Global Crisis Risk (BBG)
• Valeant Rejected Joint Takeover Approach From Takeda, TPG (WSJ)
• Activist William Ackman, Valeant Investor, Tries Life as an Inside Man (WSJ)

In a world where fundamentals don't matter, everyone's attention will be on Janet Yellen who speaks at 1:15pm today in Harvard, hoping to glean some more hints about the Fed's intentionas and next steps, including a possible rate hike in June or July. And with a long holiday in both the US and UK (US bond market closes at 2pm today), it is no surprise overnight trading volumes have been dreadful, helping keep global equities poised for the highest close in three weeks; this won't change unless Yellen says something that would disrupt the calm that’s settled over financial markets.