Oil prices on track to snap two-week losing streak

Brent crude futures were up 60 cents, or 0.7%, to $89.61 a barrel at 1318 GMT. U.S. West Texas Intermediate crude futures were up 60 cents, or 0.8%, to $84.23 a barrel.

Brent has gained 2.5% so far this week, while WTI is up 1.3%.

U.S. Treasury Secretary Janet Yellen told Reuters on Thursday that U.S. GDP growth for the first quarter could be revised higher, and inflation will ease after a clutch of “peculiar” factors held the economy to its weakest showing in nearly two years.

U.S. economic growth was likely stronger than suggested by weaker-than-expected quarterly data, she said.

U.S. inflation rose moderately in March, data released on Friday showed, in line with expectations and buttressing markets’ view that the Federal Reserve will likely not cut interest rates until September.

The personal consumption expenditures (PCE) price index increased 0.3% last month, the Commerce Department’s Bureau of Economic Analysis said on Friday, on par with an increase the previous month.

Data on Thursday showed that economic growth slowed in the first quarter and, prior to Yellen’s comments, tremors from an acceleration in inflation had weighed on oil prices as investors calculated the Fed would not cut rates before September.

“Any inclination towards a rate cut before the end of the summer would now provide a dovish surprise,” said Fawad Razaqzada, market analyst at StoneX.

Elsewhere, supply concerns also buoyed prices early in the session as tensions continue in the Middle East.

Israel stepped up air strikes on Rafah after saying it would evacuate civilians from the southern Gazan city and launch an all-out assault despite allies’ warnings this could cause mass casualties.