By Laila Kearney
(Reuters) – Oil prices rose slightly on Friday due to stronger-than-expected U.S. economic data, which raised investor expectations for increased demand for crude oil from the world’s biggest energy consumer .
But concerns about weak economic conditions in Asia’s biggest economies, China and Japan, limited gains.
Brent crude futures for September rose 7 cents to $82.44 a barrel by 00:14 GMT. U.S. West Texas Intermediate crude oil for September rose 4 cents to $78.32 per barrel.
In the second quarter, the U.S. economy grew at a faster-than-expected annualized rate of 2.8% as consumers spent more and businesses increased investment, Commerce Department data showed. Economists polled by Reuters predicted that US gross domestic product would grow 2.0% during the period.
At the same time, inflationary pressures eased, which kept expectations intact that the Federal Reserve would move forward with a cut in interest rates in September. Lower interest rates tend to boost economic activity, which can stimulate oil demand.
Still, continued signs of trouble in parts of Asia limited gains in oil prices.
Core consumer prices in Japan’s capital rose 2.2% in July from a year earlier, data showed on Friday, raising market expectations of a near-term interest rate rise.
But an index that excludes energy costs, seen as a better indicator of underlying price trends, rose at the slowest annual pace in nearly two years, suggesting that price increases are moderating due to weak consumption.
China, the world’s biggest oil importer, surprised markets for the second time this week by carrying out an unscheduled loan operation on Thursday at sharply lower rates, suggesting authorities are trying to provide heavier monetary stimulus. to sustain the economy.
(Reporting by Laila Kearney in New York; Editing by Jamie Freed)