Investing.com — Oil prices edged higher on Friday, breaking a two-week losing streak after the dollar loosened strength following inline inflation data at a time when geopolitical tensions persist.
At 2:30 PM ET (19:30 GMT), the price rose 0.3% to $89.85 per barrel, while it rose 0.4% to $89.38 per barrel.
PCE inflation is rising in line with expectations
The dollar rose 0.3% last month, bringing the annual figure through March to 2.7%, compared with economists’ estimates of a 2.6% rise.
The PCE price index is one of the inflation measures that the US central bank tracks for its 2% target.
Signs of persistent inflation in the country have led investors to curb expectations that the Federal Reserve will cut interest rates in the near future, even after U.S. data came in softer than expected earlier this week.
Drilling rig counts at Baker Hughes are down the most since November
The number of oil rigs operating in the U.S. fell from 511 to 506, according to Friday data from energy services company Baker Hughes, marking the biggest weekly decline since November.
The drop in rig counts came even after data this week showed U.S. production holding steady at near record highs.
Oil production for the week ending April 19 was 13.1 million barrels per day, unchanged from the previous week.
The risks for the Middle East remain
Prices rose in recent sessions as data showed the U.S. shrank more than expected overall last week, suggesting some tightness in global oil markets.
Remove ads
.
Concerns about supply disruptions in the Middle East also continued to play a role as Israel stepped up its attacks on Gaza. Although a war with Iran did not materialize, the conflict between Israel and Hamas showed few signs of ending.
The US would also mobilize more military aid for Israel after President Joe Biden approved a bill earlier this week.
This left certain elements of the risk premium in play for oil prices, helping them address concerns about weaker demand and weakening global growth.
Still, oil prices traded well below a five-month high reached earlier in April as the lack of immediate escalation in the Iran-Israel conflict forced traders to price in a risk premium on crude.
(Peter Nurse, Ambar Warrick contributed to this article.)
