Oil prices up over rising supply concerns

By Firdevs Yuksel

ISTANBUL (AA) - Oil prices increased on Friday over rising concerns for global oil supply routes in the Middle East, despite the strong US dollar and falling hopes over the US Federal Reserve's (Fed) interest rate cuts.

International benchmark Brent crude traded at $90.42 per barrel as of 0733 GMT, a 0.76% increase from the closing price of $89.74 per barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $85.81 per barrel at the same time, a 0.93% rise from the previous session that closed at $85.02 per barrel.

Geopolitical tensions in the Middle East continue to put global energy supply routes at risk and drive up oil prices.

A missile strike on the Iranian Consulate in the Syrian capital, Damascus, resulting in the killing of a top commander of Iran’s Islamic Revolutionary Guard Corps and six other officers, exacerbated tensions in the region, where busy energy supply routes are located.

Tensions between Israel and Iran further rose on Wednesday, when Tehran vowed to avenge the attack, while Tel Aviv expressed readiness to retaliate if attacked.

However, uncertainty over the timing of the US Federal Reserve’s interest rate cuts combined with statements by Fed officials limited upward price movements.

US consumer inflation figures for March came in higher than estimates, while US producer inflation in March came below market expectations, but accelerated on an annual basis.

The strengthening of the US dollar against other currencies also halts additional price rises by making oil more expensive for foreign currency holders.