Oil trending upwards

Oil prices rose for a second day as signs of rising demand and a renewed appetite for risk in markets underpinned confidence. Brent crude, the global benchmark, rose 0.5% on Wednesday to $86 a barrel, while U.S. crude neared $83. U.S. domestic inventories fell by 3.4 million barrels last week as gauges of jet fuel and gasoline consumption rose as the summer travel season got underway. The rally came as global stocks rebounded, with U.S. shares hitting a new high ahead of inflation data due later Thursday that could prompt investors to expect a rate cut from the Federal Reserve. Crude has rebounded this year, supported by OPEC+ supply cuts, but relatively muted moves have seen volatility fall to six-year lows this month. Some OPEC+ members continue to pump above agreed limits, while top producer Russia saw notable declines in June. Investors will be watching the International Energy Agency's monthly market snapshot for its assessment of global crude balances for this half of the year later Thursday.