By Georgina McCartney
HOUSTON (Reuters) -Oil prices edged up slightly on Friday, boosted by worries about geopolitical tensions but still under pressure from U.S. data showing inflation rose moderately in March, dampening hopes the Federal Reserve would cut interest rates soon.
Brent crude futures were up 7 cents, or 0.08%, to $89.08 a barrel at 1109 ET (1509 GMT). U.S. West Texas Intermediate crude futures were up 6 cents, or 0.07%, to $83.63 a barrel.
The personal consumption expenditures (PCE) price index increased 0.3% last month, the Commerce Department’s Bureau of Economic Analysis said, on par with an increase the previous month.
In the 12 months through March, U.S. inflation rose 2.7% after advancing 2.5% in February. Last month’s increase was broadly in line with economists’ expectations.
The Fed targets 2% inflation, so the U.S. central bank policymakers are expected to leave rates unchanged next week.
“The economic data this morning was enough for market participants to conclude that the Fed is not going to be forthcoming with interest rate cuts any time soon”, said John Kilduff, partner with Again Capital LLC.
“Geopolitical jitters in the market are what is keeping us aloft, those two competing forces should keep us in check”, he added.
U.S. Treasury Secretary Janet Yellen told Reuters on Thursday that U.S. GDP growth for the first quarter could be revised higher, and inflation will ease after a clutch of “peculiar” factors held the economy to its weakest showing in nearly two years.
U.S. economic growth was likely stronger than suggested by weak quarterly data, she said. Oil prices have flip-flopped since her comments and release of Friday’s data.
Supply concerns supported prices as tensions continue in the Middle East.
Israel’s Prime Minister Benjamin Netanyahu said any International Criminal Court rulings would not affect Israel’s actions but would “set a dangerous precedent”.
“Under my leadership, Israel will never accept any attempt by the International Criminal Court in the Hague to undermine its basic right to defend itself,” Netanyahu said in a statement shared on Telegram.
Israel had stepped up air strikes on Rafah after saying it would evacuate civilians from the southern Gazan city and launch an all-out assault despite allies’ warnings this could cause mass casualties.
(Additional reporting by Noah Browning and Ahmad Ghaddar in London and Sudarshan Varadhan in Singapore; Editing by Jason Neely, Mark Potter and David Gregorio)
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