Oil rises towards $65

Oil rose towards $65 a barrel on Wednesday before a US government report expected to show domestic crude inventories fell for an eighth week, a sign that a supply glut is easing. The industry group American Petroleum Institute (API) on Tuesday reported a drop in US crude stocks, ahead of Wednesday's official data. Doubts over the likelihood of a deal next week on Iran's nuclear work also supported prices. Brent crude rose 30 cents to $64.75 a barrel by 0836 GMT. US crude gained 39 cents to $61.40. Both contracts made gains on Tuesday. The dollar index eased as investors focused on the prospects for higher US interest rates rather than on Greece. A weak dollar makes commodities priced in dollars cheaper for holders of other currencies, according to Reuters.