A drop in the dollar after data on US economic growth slowed provided some support for oil prices.
Oil prices posted gains on Friday and are on course to end the current week in positive territory, amid bets on lower supplies and continued geopolitical turmoil in the Middle East.
Markets are on hold ahead of US inflation data due later in the day, which is expected to provide more clues on the path of interest rates.
The Brent price increased by 0.65% to $89.59 per barrel, while crude showed a similar rate of positive change at $84.10 per barrel.
A drop in the dollar after data on US economic growth slowed provided some support for oil prices.
Week with a positive sign
Brent is currently up 2% for the week, while crude is up nearly 0.2%.
Prices moved higher in recent sessions as data showed total US inventories shrank more than expected last week, pointing to some shortfall in oil markets.
Concerns about Middle East supply disruptions also remain in the foreground as Israel escalated its strikes against Gaza. While a war with Iran has not progressed, the Israel-Hamas conflict appears not to be escalating.
The US was also set to mobilize more military aid for Israel after President Joe Biden approved a bill earlier this week.
US personal consumption expenditure data is awaited
Oil prices rose even as softer-than-expected U.S. gross domestic product data this week raised concerns about slowing demand in the world’s top fuel-consuming country as growth pressured by persistent inflation and high interest rates.
US inflation data added to concerns as the first quarter GDP price index came in higher than expected.
The focus was now on the upcoming PCE data, which is expected later on Friday. The metric is the Federal Reserve’s preferred gauge of inflation and is widely expected to influence the central bank’s outlook for interest rates.
