Oil climbed as attention turned from expanding American fuel stockpiles to the prospects for monetary easing as the world’s top central bankers gather in Jackson Hole, Wyoming.

Futures rose as much as 0.7% in New York, rebounding from a 1.2% decline on Wednesday that was spurred by a surprise jump in American diesel and gasoline inventories. Investors are expecting another rate cut at the Federal Reserve’s Sept. 17-18 meeting and will be closely watching Chair Jerome Powell’s speech Friday at the annual policy retreat of the Kansas City Fed.

Oil is heading for its first back-to-back weekly gain since June, aided by a drone attack on a Saudi Arabian oil field and hints of a thaw in U.S.-China trade relations. U.S. oil inventories fell by 2.7 million barrels last week, the first drop in three weeks, the Energy Information Administration said Wednesday.

West Texas Intermediate crude for October delivery added 35 cents, or 0.6%, to $56.03 a barrel on the New York Mercantile Exchange as of 9:01 a.m. in Singapore after being up as much as 39 cents earlier. The contract has risen 2.1% so far this week.

Brent for October settlement climbed 30 cents, or 0.5%, to $60.60 a barrel on the ICE Futures Europe Exchange. The global benchmark traded at a premium of $4.55 to WTI.

Source : Bloomberg