(MENAFN) Oil rates experienced an upward trend on Friday, buoyed by escalating tensions in the Middle East. However, this bullish momentum was tempered by a robust dollar and US inflation figures, which dampened hopes for imminent interest rate cuts by the Federal Reserve, imposing a cap on prices. Brent crude futures climbed by 49 cents to reach USD89.50 per barrel, while US West Texas Intermediate crude futures saw a 28-cent increase to settle at USD83.85 per barrel, as highlighted in the Weekly Energy Market Review by the Al-Attiyah Foundation.
The ongoing geopolitical tensions in the Middle East continued to lend support to oil prices, with concerns about potential disruptions to the region's oil supply persisting. Israel's military confirmed an airstrike in Lebanon's Beqaa region, resulting in casualties among members of a Lebanese militant group. Additionally, Israel intensified airstrikes in Rafah, southern Gaza, despite warnings from allies regarding the risk of significant civilian casualties.
Meanwhile, in the United States, inflation figures released for the twelve months ending in March showed a 2.7 percent increase, up from 2.5 percent in February. This uptick in inflation, which aligns with the Federal Reserve's 2 percent target, prompted speculation about the central bank's monetary policy stance. With the Fed widely expected to maintain interest rates at its upcoming meeting, market sentiment was tempered by concerns about the impact of inflationary pressures on future rate decisions.
In the Asian spot liquefied natural gas (LNG) market, prices experienced a marginal decline for the first time in over two months. This downturn was attributed to expectations of subdued demand amid easing concerns about supply disruptions stemming from geopolitical tensions in the Middle East.
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