Brent reached sixmonth high on Friday
China39;s Q1 GDP grows 5.3 yy, well above forecast
Iran will respond to any action against its interests

LONDON, April 16 Reuters Oil edged lower on Tuesday as easing concern about supply risks and a rapidly escalating conflict after Iran39;s weekend attack on Israel offset data showing China39;s economy grew faster than expected in the first quarter.

Also weighing was strongerthanexpected U.S. retail sales for March that further reinforced expectations the U.S. Federal Reserve is unlikely to rush to cut interest rates, a scenario that dampens the prospects for oil demand.

Brent futures for June delivery fell 26 cents, or 0.3, to 89.84 a barrel by 0935 GMT. U.S. crude for May slipped 20 cents, or 0.2, to 85.21.

The balancing act between sticky inflation, a hesitant Fed and the gradual move towards a fullblown regional conflict keeps oil…in its range, said Tamas Varga of oil broker PVM.

Material disruption to oil production, supply or shipping must take place to approach the 100 a barrel milestone. Currently such a development appears implausible.

Concern that Iran would respond to the strike on its embassy compound in Damascus helped send Brent on Friday to 92.18, the highest since October.

Prices, though, fell on Monday after Iran39;s attack on Israel proved to be less damaging than anticipated, easing concerns of a quickly intensifying conflict that could disrupt supply.

As the risk to supply is waning and a military…