Oil prices rose for a second straight session on Thursday on rising expectations that the Federal Reserve will cut interest rates in September, but are under pressure by higher U.S. inventories and OPEC+’s plan to increase supply.

Brent crude futures were up 33 cents, or 0.42%, at $78.74 a barrel by 0645 GMT. WTI futures were up 39 cents, or 0.53%, at $74.46.

Polls show most economists expect the Fed to cut interest rates in September, offsetting recent supply news that has caused a decline.

Lower interest rates, which lower the cost of borrowing, can spur economic activity and boost oil demand.

But U.S. services sector activity, which accounts for the vast majority of the country’s economic output and returned to growth in May after contracting in April, could undermine the case for a rate cut.

Meanwhile, despite Thursday’s gains, oil indexes were heading for weekly declines of around 4%, weighed down by the latest supply decision by the Organization of the Petroleum Exporting Countries and its allies.

The group agreed on Sunday to extend most of its oil output cuts through 2025 but left the door open for voluntary cuts from the eight members to be gradually rolled back starting in October.

OPEC+’s move to roll back a 2.2 million bpd cut in the final quarter of 2024 is likely to add further pressure to index prices. Weaker demand expectations are also expected to drive a decline as inventory builds.

Saudi Arabia also lowered its official selling prices (OSP) for July crude, a move that came while falling Middle East crude benchmarks and weaker profit margins for Asian refiners.

Meanwhile, US crude oil inventories rose by 1.2 million barrels in the week to May 31, compared with analysts’ estimates of a decline of 2.3 million barrels, according to data from the US Energy Information Administration (EIA).