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Oil Closes at One-Week High as Inflation Cools, Dollar Declines

  • Gasoline demand has rebounded, based on EIA fuel inventory
  • US inflation pace slowed, cushioning market against steep drop
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US Inflation Cools More Than Forecast as Gasoline Price Drops
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Oil settled at the highest level in a week on signs of cooling inflation and a weakening dollar. 

West Texas Intermediate topped $91 a barrel in New York after the US reported inflation rose at a slower-than-expected pace, potentially relieving pressure on the Federal Reserve to raise interest rates further. Later in the session, a slumping US dollar helped to lift commodities broadly, while government data showed that weekly US gasoline demand had improved after inventories sank below the 10-year seasonal average.