Crude oil tracks global equities higher, IEA demand downgrade weighs

Oil prices rose about 2% on Thursday on expectations that U.S. interest rates had peaked, but a lower demand growth forecast for next year from the International Energy Agency and higher U.S. inventories limited further gains.

Brent futures rose $1.55, or 1.8%, to $87.37 a barrel at 1323 GMT, while U.S. West Texas Intermediate crude gained $1.41, or 1.7%, to $84.90 a barrel.

World shares rose and the dollar and bond market borrowing costs held steady ahead of U.S. inflation data and European Central Bank meeting minutes that will add to the debate on where interest rates are heading.