Oil rises on positive demand signals

Oil rose for a third day on signs of strengthening demand and signals that the Fed is approaching a much-anticipated milestone. Brent crude rose to $86 a barrel and U.S. crude rose above $83. Data this week showed a surge in U.S. gasoline and jet fuel consumption for the summer travel season, while crude inventories around the country fell further. Brent’s rapid expansion pointed to tighter conditions in the near term. U.S. inflation slowed to its slowest pace since 2021 overall in June, reinforcing expectations that the Fed will begin cutting borrowing costs this quarter. That pressured the U.S. dollar, which saw its first consecutive weekly decline since early May, making the commodity more attractive to overseas buyers. Oil has been on the rise this year as OPEC+ has reined in production to tighten the market and offset supply increases from countries outside the cartel. The group estimates that worldwide crude consumption will rise by more than 2 million barrels a day this year, but the International Energy Agency takes a more cautious view as China's economy cools.