Oil prices rose during Friday's trade amid fears about the impact of tensions in the Middle East on global crude oil supply levels, but a stronger dollar and U.S. inflation data limited gains in prices.
Brent crude futures were up 49 cents (0.55 percent) at $89.50 a barrel, while U.S. West Texas Intermediate crude futures were up 28 cents (or 0.34 percent) at $83.85 a barrel..
Middle East tensions support prices
Supply concerns contributed to supporting prices as tensions continued in the Middle East, which includes the world's biggest crude oil producers.
Amid rising tensions in the region, the Israeli military said on Friday it had killed a gunman who carried out attacks against Israel in a bombardment of Lebanon's western Bekaa Valley..
Israel intensified its airstrikes on Rafah on Thursday after it said it was evacuating civilians from the town in the southern Gaza Strip. ..
At the same time, Israeli Prime Minister Benjamin Netanyahu said any verdict issued by the International Criminal Court would not affect Israel's position but would “set a dangerous precedent.”.”
Growth means diminishing returns
On the other hand, concerns about economic growth, with the announcement of mixed economic data in the US on Friday, limited the momentum of oil prices.
Although data showed a slowdown in US economic growth in the first quarter of this year, other reports on Friday revealed a continued increase in the inflation rate last March, bolstering expectations for the Federal Reserve. Keeping interest rates at their high levels for a long time.
Inflation rose to 2.7 percent year-on-year in March from 2.5 percent in February..
Lawmakers aim to keep inflation below 2 percent, and the council is expected to keep interest rates unchanged during a monetary policy meeting scheduled for next week..
