Oil Prices Rise as Investors Await Crucial Inflation Data

Oil prices rose for the second day in a row on Wednesday as investors await the release of key US inflation data, which could influence the Federal Reserve's decision on interest rates.

The consumer price index (CPI) figures are due to be released, following a report last week that showed the US economy lost over 20,000 jobs in July, indicating a weakening labour market.

Inflation has remained above the Fed's two percent target for more than five years, and policymakers are considering raising borrowing costs. Three board members dissented from the decision to hold rates at the bank's July meeting, calling for an increase instead.

The higher oil prices rise, the more traders expect the Fed to tighten its monetary policy. The lack of progress in talks between the US and Iran on a deal to reopen the Strait of Hormuz is adding upward momentum to oil prices.