FX.co ★ Oil Gains On Weaker Dollar Ahead Of US Inflation Data

Oil prices edged higher on Wednesday as the dollar weakened ahead of key U.S. data that could influence the Federal Reserve's future interest-rate path.

Benchmark Brent crude futures rose 0.3 percent to $85.90 a barrel, while WTI crude futures were up 0.3 percent at $81.75.

Both benchmarks rose around 2 percent on Tuesday on optimism about China stimulus and signs of tightening supply.

The dollar traded weak as investors await a report on U.S. consumer inflation and the minutes of the Federal Reserve's last meeting later in the day for direction.

Economists expect consumer prices to rise by 0.3 percent in March, while the annual rate of growth is expected to slow to 5.2 percent from 6.0 percent.

Reports on U.S. producer prices, retail sales and industrial production due later in the week could also have a significant impact on the outlook for interest rates.

The U.S. government will release its stockpile data later this session.

U.S. crude stockpiles unexpectedly rose by about 380,000 barrels last week, against expectations for a small decline, the American Petroleum Institute, an industry body, said in a report on Tuesday.