Investing.com– Oil prices rose Thursday as the prospect of improving demand through lower U.S. interest rates helped traders look past growing concerns over weaker demand. 

At 09:05 ET (13:05 GMT),  rose 1% to $80.52 a barrel, while rose 1% to $77.78 a barrel. 

CPI, retail sales data in focus 

Softer-than-expected inflation data on Wednesday ramped up hopes that the Federal Reserve will cut interest rates by at least .

Additionally, U.S. retail sales rose by a larger than expected amount in July, pointing to resilience in consumer spending activity and the potential of a soft landing.

rose by 1% last month, more than the expected 0.4% growth, accelerating from an unchanged reading in June, according to Commerce Department data released earlier Thursday. 

The prospect of lower rates spurred some bets that U.S. economic conditions will improve in the coming months, helping buoy demand in the world’s biggest fuel consumer.

Mixed Chinese economic readings offer some support 

A slew of economic readings from China offered some positive cues to oil markets on Thursday. 

grew more than expected in July, with the increase coming after Beijing rolled out a slew of rate cuts and measures aimed at boosting consumption.

But Chinese grew less than expected, as did . China’s also unexpectedly rose. 

Slowing Chinese demand has been a key source of anxiety for crude markets, especially as the country struggles with a dwindling economic recovery.

Oil nurses losses after surprise build in US inventories 

Oil prices slid on Wednesday after government data showed an unexpected build in U.S. , by about 1.4 million barrels, against expectations for a draw of 1.9 mb.

While gasoline and distillate inventories still saw strong draws, the build in overall inventories- the first weekly build in seven- spurred fears that the travel-heavy summer season was winding down.

The build in inventories also came as the and the both trimmed their outlook for oil demand growth in 2024, citing concerns over slowing demand in top oil importer in China.

(Ambar Warrick contributed to this article.)