Oil rose on Wednesday on renewed optimism about the US economy, as traders took their cue from higher stock prices.Benchmark West Texas Intermediate crude for September delivery rose $1.25 to $87.89 per barrel in midday trading on the New York Mercantile Exchange.Brent crude, which is used to price many international oil varieties, increased by $1.74 to $110.87 per barrel on the ICE Futures exchange in London. Rising stock markets and a weaker dollar pushed up oil. Stocks were higher on a series of better-than-expected earning reports from companies such as Target, John Deere and Staples.The price of Opec basket of twelve crudes stood at $105.42 a barrel, compared with $104.78 the previous day, according to Opec Secretariat calculations. From / Gulf Today