Oil rises ahead of critical US data

Oil headed for a weekly gain ahead of U.S. inflation data. Oil headed for a weekly gain ahead of U.S. inflation data that could provide more clues about the path of monetary policy and shape appetite for risk assets including commodities such as crude. Brent rose above $89 a barrel, up more than 2% for the week; U.S. crude was near $84. The Fed’s preferred inflation figure is due later Friday and will come sharply on data showing weakening U.S. economic growth. Other indicators of U.S. price increases were higher than expected, suggesting the timing of rate cuts could be delayed. Crude has been higher this year on geopolitical risks in the Middle East, including supply cuts imposed by OPEC+ and escalating tensions between Israel and Iran, which pushed Brent above $90 a barrel earlier this month. The week’s rally was also supported by a decline in U.S. domestic inventories. “The focus is likely to remain on the macro level,” said Charu Chanana, analyst at Saxo Capital Markets, adding that further acceleration in prices could cloud demand expectations. At the same time, weak US GDP data also raised concerns of stagflation.