Dec 15 Reuters Oil prices rose on Friday, on track to notch their first weekly rise in two months after benefiting from a bullish forecast from the International Energy Agency IEA on oil demand for next year and a weaker dollar.

Brent futures rose 21 cents to 76.82 a barrel at 0640 GMT. U.S. West Texas Intermediate WTI crude climbed 20 cents to 71.78.

Both benchmarks are on course for a modest weekly gain, having been lifted by a midweek announcement from the U.S. Federal Reserve that it is likely to cut borrowing costs next year.

Oil prices may see a bit of a 39;demand pull39; due to improved liquidity conditions after the Fed39;s dovish pivot, said Kelvin Wong, an analyst at OANDA in Singapore.

The dollar fell to a fourmonth low on Thursday after the U.S. central bank indicated interest rate hikes have likely ended and lower borrowing costs are coming in 2024.

A weak dollar makes dollardenominated oil cheaper for foreign purchasers.

The European Central Bank, meanwhile, pushed back against bets on imminent cuts to interest rates on Thursday by reaffirming that borrowing costs would remain at record highs despite lower inflation expectations.

World oil consumption will rise by 1.1 million barrels per day bpd in 2024, the IEA said in a monthly report, up 130,000 bpd from its previous forecast, citing an improvement in the outlook for U.S. demand and lower oil prices.

The 2024 estimate is less than half of the Organization of the Petroleum Exporting Countries39;…