Oil endured another choppy session as traders took stock of China’s efforts to stimulate the economy and awaited commentary from the head of the U.S. Federal Reserve that may shape the outlook for interest rates.
In recent days there have been signs of firmness in Middle Eastern crude markets. A flurry of buying from refiners in China and Japan, alongside busy trading activity in a key pricing window, has seen spot differentials for some grades double over the last week, an unusually large move over that time period.
Later Wednesday, Fed Chair Jerome Powell is scheduled to give his semi-annual report to Congress. While policymakers kept interest rates unchanged at their meeting last week, they forecast further rises in the second half to help bring still-elevated inflation back toward their target.