Oil rises as hawkish Fed talk expectations offset China demand worries

Oil prices rebounded early on Wednesday, recovering after two straight sessions of losses, as expectations of hawkish Federal Reserve talk later in day and possible U.S. crude stock drawdowns outweighed China demand worries.

Brent futures firmed 23 cents to $76.13 a barrel and U.S. West Texas Intermediate (WTI) crude futures inched up 26 cents to $71.45 a barrel as of 0611 GMT.

“We expect Fed Chair (Jerome) 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 a note, referring to the central bank’s Federal Open Market Committee.