SINGAPORE, March 8 Reuters Oil prices rose on Friday, driven by growing demand in the world39;s biggest consumers, the United States and China, while the U.S. Federal Reserve gave a positive signal on the possibility of rate cuts.

Brent crude futures were up 0.7, or 58 cents, at 83.54 a barrel by 0700 GMT. U.S. West Texas Intermediate crude futures rose 0.9, or 69 cents, to 79.62.

Both contracts were down slightly on the week so far, however, with Brent and WTI down 0.1 and 0.5, respectively.

Data from the Energy Information Administration showed that U.S. gasoline inventories fell 4.5 million barrels last week, and distillate stockpiles were down 4.1 million barrels. Both fell more than expected, in a sign of strong demand.

With the U.S. driving season just on the horizon, the market could get even tighter in coming weeks, ANZ Research said in a note.

In China, imports of crude oil rose 5.1 in the first two months of 2024 from a year earlier, and India39;s fuel consumption increased 5.7 in February on the year, amid strong factory activity in the world39;s thirdbiggest oil importer and consumer.

After accounting for this year39;s extra day in February, crude oil imports in China were up 3.3 in annual terms, Capital Economics said in a note, in line with expectations of a demand increase for the year.

But that growth will be substantially lower than in 2023, when the end of zeroCOVID restrictions led to a surge in activity in transport and travel, it added….