Oil prices rise on U.S. inventories drawdown expectations, CPI focus

Oil prices increased on Wednesday due to expectations of higher demand. The rise is attributed to the weakening U.S. dollar and a report showing a decrease in U.S. crude and gasoline inventories. U.S. crude oil inventories fell by 3.104 million barrels, while gasoline inventories dropped by 1.269 million barrels. U.S. government inventory data is expected to reveal further drops in crude stockpiles as refineries increase production to meet summer driving season demand. The release of U.S. consumer price index data is also anticipated to provide insights into potential interest rate cuts and their impact on the economy and fuel demand. Additionally, oil prices received support from a weaker U.S. dollar and stimulus measures in China. Concerns about Canadian oil supply due to approaching wildfires in Fort McMurray have also contributed to price support.