Oil fluctuates as hawkish Fed comments overshadow China outlook

Oil swung between gains and losses as traders took stock of the outlooks for U.S. monetary policy and Chinese consumption.

West Texas Intermediate edged higher near US$75 a barrel after earlier losing 1.1 per cent. Two Federal Reserve officials said the central bank will likely need to raise interest rates above five per cent before pausing and holding to combat inflation. The comments also weighed on Asian stocks and other commodities.

Oil rallied Monday after Beijing provided refiners and traders with a generous import quota in its second allocation for 2023, as Asia's biggest economy gears up for growth after dismantling its strict Covid restrictions late last year. That's being countered by continued indications that the market is oversupplied, with the nearest portions of the futures curves for Brent and WTI trading in a bearish contango.