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Brent crude futures for August settlement, which expire on
Friday, were up 64 cents, or 0.74%, to $87.03 a barrel by 1105
GMT. The more liquid September Brent contract was up 0.67% at
$85.83 a barrel.
U.S. West Texas Intermediate crude futures for August delivery
rose 68 cents, or 0.83%, to $82.42 a barrel.
Brent and WTI futures have gained nearly 2% this week, with both
benchmarks on track for gains of slightly more than 6% month on
month.
U.S. personal consumption inflation data, the Fed's preferred
measure of inflation, is due to be released at 1230 GMT.
"With the rates market looking for two rate cuts from the Fed by
the end of this year, the price data will serve as validation
for whether expectations are being overly dovish," said Yeap Jun
Rong, a market strategist with IG.
Growing expectations of an imminent Fed easing cycle have
sparked a risk rally across stock markets. Traders are now
pricing in a 64% chance of a first Fed cut in September, up from
50% a month ago, according to the CME FedWatch tool.
"Increasing bets about a September rate cut, and two by
December, are likely to weigh on Treasury yields and the U.S.
dollar, thereby allowing oil prices to continue marching north,"
said Charalampos Pissouros, senior investment analyst at
brokerage XM.
Easing interest rates could be a boon for oil as it could
increase demand from consumers.
A recovery in physical refining margins also buoyed markets,
with the Singapore complex refining margins on average $1 higher
in June than in May at around $3.60 a barrel.
Capping gains was political uncertainty in France that have a
knock-on effect on oil demand.
(Reporting by Arunima Kumar in Bengaluru, Shariq Khan in New
York and Trixie Yap in Singapore; editing by Kim Coghill, Jason
Neely and Chizu Nomiyama)
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