By Arathy Somasekhar

July 11 (Reuters) - Oil prices edged higher on Thursday

as crude stocks fell after U.S. refineries ramped up processing

and as gasoline inventories eased, signalling stronger demand.

Brent futures rose 35 cents, or 0.4% to $85.43 a

barrel. U.S. West Texas Intermediate (WTI) crude rose 36

cents, or 0.5%, to $82.47 a barrel.

U.S. crude inventories fell by 3.4 million barrels to 445.1

million barrels in the week ended July 5, far exceeding

analysts' expectations in a Reuters poll for a 1.3

million-barrel draw.

Gasoline stocks fell by 2 million barrels to 229.7 million

barrels, much bigger than the 600,000-barrel draw analysts

expected during the U.S. Fourth of July holiday week.

The Organization of the Petroleum Exporting Countries also

stuck to its forecast for relatively strong growth in global oil

demand in 2024 and next year, saying on Wednesday that resilient

economic growth and air travel would support fuel use in the

summer months.

Gains were, however, capped as supply disruptions at

refineries and offshore production facilities from hurricane

Beryl were minimal.

Meanwhile, U.S. inflation data due this week include the

Consumer Price Index on Thursday and the Producer Price Index

report on Friday, both of which could set the tone for the

market.

Expectations of a 25-basis-point rate cut by September

ticked up to 74% from around 70% on Tuesday and 45% a month ago,

according to CME's FedWatch.

Lower interest rates decrease the cost of borrowing, which

can boost economic activity and oil demand.

Federal Reserve Chair Jerome Powell said on Wednesday the

U.S. central bank will make interest rate decisions "when and

as" they are needed, pushing back on a suggestion that a

September rate cut could be seen as a political act ahead of the

fall presidential election.

(Reporting by Arathy Somasekhar in Houston; Editing by

Muralikumar Anantharaman)