By Arathy Somasekhar

May 29 (Reuters) - Oil prices rose on Wednesday on

expectations major producers will maintain production cuts at a

meeting this Sunday at the same time fuel consumption should

begin rising with the start of the peak summer demand season.

Brent crude futures for July delivery rose 27 cents,

or 0.3%, to $84.49 a barrel at 0042 GMT. U.S. West Texas

Intermediate futures for July climbed 35 cents, or 0.4%,

to $80.18.

Traders and analysts expect the Organization of the

Petroleum Exporting Countries and its allies including Russia,

known as OPEC+, to keep voluntary production cuts totalling

about 2.2 million barrels per day in place.

The Memorial Day holiday on Monday signals the start of the

peak demand season in the U.S., the world's biggest oil

consumer, and keeping the production cuts in place should keep

prices supported as consumption rises.

"Initial data suggest a relatively high number of U.S.

holiday trips have been taken over the Memorial Day holiday, the

traditional start of the driving season. Air travel has also

been strong," Daniel Hynes, senior commodity strategist at ANZ

Bank, said in a note.

Increased fighting in the Gaza Strip as Israeli tanks

advanced to the heart of the Rafah section also provided some

backing for prices amid concerns of a widening of the conflict

to the greater Middle East, a key supply region.

Investors were also watching out for U.S. crude inventory

data from the American Petroleum Institute for release later in

the day. The data was delayed by a day by the Memorial Day

holiday on Monday.

U.S. crude oil stockpiles were expected to have fallen by

about 1.9 million barrels last week, a preliminary Reuters poll

showed on Tuesday.

Investors also awaited U.S. inflation data this week that

could sway expectations for Federal Reserve interest rate cuts

that could be positive for oil prices.

The U.S. core Personal Consumption Expenditures Price Index

report for April is due later this week. The Fed's preferred

inflation barometer is expected to hold steady on a monthly

basis.

Expectations for the timing of rate cuts have see-sawed,

with policymakers wary as data still reflects sticky inflation.