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Oil rises as hawkish Fed talk expectations outweigh Chinese demand worries

21 June 2023 09:14 (UTC +04:00)

Oil prices rebounded early on Wednesday, recovering after two straight sessions of losses, as expectations of hawkish Fed talk later in the afternoon and possible U.S. crude stock draws in outweighed China demand worries, APA reports citing Reuters.

Brent futures rose 35 cents to $76.25 a barrel and U.S. West Texas Intermediate (WTI) crude futures climbed 34 cents to $71.53 by 0307 GMT.

"We expect Fed Chair Powell to deliver a hawkish semi-annual testimony to Congress reflecting the FOMC's median projection for higher interest rates in coming months and more resilient inflation in the near term," ANZ Research said in the note, referring to the central bank's Federal Open Market Committee.

Official U.S. oil inventory data from the American Petroleum Institute industry group will be released later on Wednesday and the Energy Information Administration on Thursday, both reports delayed by a day following the Juneteenth public holiday on Monday.