Brent up 0.2, WTI up 0.3
US rate cut hopes offset worries on China demand

Aug 15 Reuters Oil prices rose on Thursday, supported by optimism that potential U.S. interest rate cuts will boost economic activity and fuel consumption though concerns over slower global demand curbed gains.

Brent crude futures rose 19 cents, or 0.24, to 79.95 a barrel by 0625 GMT, recovering some of the previous day39;s losses. U.S. West Texas Intermediate crude futures increased by 23 cents, or 0.3, to 77.21 per barrel.

Both benchmarks fell more than 1 on Wednesday after U.S. crude inventories rose unexpectedly and on easing worries about a wider Middle East conflict.

U.S. consumer prices rose moderately in July and the annual increase in inflation slowed to below 3 for the first time in nearly 312 years, reinforcing expectations the Federal Reserve will cut interest rates next month.

We saw a correction in Asia trade as the oil market was oversold on Wednesday, said Yuki Takashima, economist at Nomura Securities, adding that investors are betting the Fed could start cutting rates next month.

Investor worries over Iran39;s potential response to the killing of the leader of the Palestinian Islamist group Hamas last month supported prices. Three senior Iranian officials have said that only a ceasefire deal in Gaza would hold Iran back from direct retaliation against Israel for the assassination.

Geopolitical risk continues to hang over the oil market. It is still unclear how and if…