Global crude oil prices ticked today as optimism built that potential US interest rate cuts will boost economic activity and fuel consumption, but concerns over slower global demand curbed gains.

Brent crude oil prices were up 51 cents, or 0.6%, at 80.27 dollars a barrel. US crude also gained 47 cents, or 0.6%, to 77.45 dollars per barrel. Both benchmarks fell more than 1% on Wednesday after US crude inventories rose unexpectedly.

U.S. consumer prices rose moderately in July and the annual increase in inflation slowed to below 3% for the first time in nearly 3 1/2 years, reinforcing expectations the Federal Reserve will cut interest rates next month.

Investor worries over Iran’s potential response to the killing of the leader of the Palestinian militant group Hamas last month supported prices. Three senior Iranian officials have said that only a ceasefire deal in Gaza would hold Iran back from direct retaliation against Israel for the assassination.

However, oil inventory gains raised concerns of weaker demand. US crude oil stockpiles rose by 1.4 million barrels in the week ended August 9, compared with estimates for a 2.2 million barrel draw, building for the first time since late June.

China’s factory output growth slowed in July while refinery output fell for a fourth month, underscoring the country’s spotty economic recovery, also limiting the market’s upside.