By Adedapo Adesanya
Crude oil prices settled higher on Friday amid continued tensions in the Middle East just as a strong Dollar and US inflation data pressured the market.
Brent crude futures gained 49 cents or 0.55 per cent to trade at $89.50 per barrel and the US West Texas Intermediate (WTI) crude futures rose by 28 cents or 0.34 per cent to $83.85 a barrel.
Supply concerns supported prices as tensions continued in the Middle East.
The Prime Minister of Israel, Mr Benjamin Netanyahu, said any rulings by the International Criminal Court, which is investigating Hamas’ October 7 attacks on Israel and Israel’s military assault on Gaza, would not affect Israel’s actions but would “set a dangerous precedent.”
As tensions escalate, Israel’s military said on Friday that its air force struck in Lebanon’s West Beqaa District and neutralised a militant who advanced attacks against Israel.
Israel stepped up air strikes on Rafah on Thursday after saying it would evacuate civilians from the city in southern Gaza and launch an all-out assault despite allies’ warnings that doing so could cause mass casualties.
Meanwhile, macroeconomic pressures capped gains after data released on Friday showed growing inflation in the US as inflation rose 2.7 per cent year-on-year after an advance of 2.5 per cent in February.
This is still above the 2 per cent inflation target of the US Federal Reserve which is expected to leave rates unchanged at its policy meeting next week.
On Thursday, the US Treasury Secretary, Ms Janet Yellen, noted that US GDP growth for the first quarter could be revised higher, and inflation will ease after a clutch of factors held the economy to its weakest showing in nearly two years.
Meanwhile, the US Dollar soared to a fresh 34-year high against the Yen on Friday, bolstered in part by the US inflation data.
A stronger Dollar makes it more expensive for holders of other currencies to price the black gold.
Elsewhere, Secretary General of the Organisation of the Petroleum Exporting Countries (OPEC), Mr Haitham Al Ghais, said in an op-ed article that the end of oil is not in sight, as the pace of energy demand growth means that alternatives cannot replace it at the needed scale, noting that the focus should be on cutting emissions, not oil use.