Oil prices rose Thursday after crude and gasoline inventories fell as U.S. refineries increased processing, signaling stronger demand.

Brent futures rose 62 cents, or 0.73%, to $85.70 a barrel by 0620 GMT. WTI crude rose 60 cents, or 0.73%, to $82.70 a barrel.

The move was largely driven by continued declines in U.S. inventories, according to Energy Information Administration data.

U.S. crude inventories fell 3.4 million barrels in the week ended July 5 to 445.1 million barrels, well ahead of analysts’ expectations for a 1.3 million barrel drop.

Gasoline stocks fell by 2 million barrels to 229.7 million barrels, far more than the 600,000-barrel drop analysts had expected during the U.S. July 4 holiday week.

OPEC also stuck to its forecast for relatively strong growth in global oil demand in 2024 and next year, saying on Wednesday that robust economic growth and air travel would support fuel use in the summer months.

In the meantime, oil prices will be supported more by bullish factors than bearish ones.

However, gains were limited by minimal supply disruptions at refineries and offshore production facilities from Hurricane Beryl.

Meanwhile, U.S. inflation data due this week include the Consumer Price Index on Thursday and the Producer Price Index on Friday, both of which could set the tone for the market.

Expectations for a 25 basis point rate cut by September rose to 74% from nearly 70% on Tuesday and 45% a month ago.

Lower interest rates reduce the cost of borrowing, boosting economic activity and oil demand.

Fed Chairman Jerome Powell said on Wednesday that the U.S. central bank would make interest rate decisions whenever needed, pushing back against expectations that a September rate cut could be seen as a political move ahead of the fall presidential election.