Oil near two-month high

Oil is trading near a two-month high as Hurricane Beryl points to a potentially worse storm season and U.S. crude inventories point to rising demand. Brent crude is trading above $87 a barrel and U.S. crude below $84, both benchmarks heading for a fourth weekly gain. Hurricane Beryl’s risk to production in the Gulf of Mexico has diminished, but its initial appearance raised concerns about an “extremely harsh” season. Crude oil has been on a slow and steady rise since early June, partly because of a positive outlook for demand in the northern hemisphere’s summer season. Signs of weakening demand in Asia tempered that optimism, prompting Saudi Aramco to cut crude prices for the region for a second month. Investors will be watching U.S. employment data later on Friday that could shed light on the outlook for monetary policy. It will also affect the dollar, which has weakened this week and made commodities priced in that currency cheaper for international investors. Geopolitical risks are also on the table, including the French election and concerns about U.S. President Joe Biden’s performance in his debate with Donald Trump. The situation in the Middle East also remains volatile, with progress in ceasefire talks between Hamas and Israel but signs that the conflict with Iran-backed Hezbollah is worsening.