(Reuters) -Oil prices nudged higher on Friday to fresh one-week highs after U.S. President Donald Trump warned of “consequences” if Russia blocked a Ukraine peace deal, injecting concerns about supply.
Sentiment was also boosted by strong economic data out of Japan, which is among the largest global crude importers.
Brent crude futures gained 16 cents, or 0.2%, to $67.00 a barrel by (0017 GMT). U.S. West Texas Intermediate crude futures were up 14 cents, also 0.2%, to $64.10.
All eyes are on Friday’s meeting of Trump and Russian leader Vladimir Putin in Alaska where a ceasefire in the Ukraine war is at the top of the agenda. A continued conflict between Russia and Ukraine supports oil markets by limiting the supply of Russian oil.
Trump, however, also said he believes Russia is prepared to end the war in Ukraine.
Fresh Japanese government data released on Friday showed the economy expanded an annualised 1.0% in the April-June quarter, compared with a median market forecast for a 0.4% increase.
The rise in gross domestic product (GDP) translated into a quarterly increase of 0.3%, compared with a median estimate of a 0.1% increase. Strong economic activity typically spurs oil consumption.
Prospects of higher-for-longer U.S. interest rates, however, kept oil prices from rising further.
Higher-than-expected inflation data and weak jobs numbers out of the U.S. raised concerns that the Federal Reserve would keep interest rates high, usually a dampener of oil consumption.
(Reporting by Laila Kearney; Editing by Muralikumar Anantharaman)
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