Oil steadies as traders take stock of China concerns and U.S. Fed

​Oil steadied after a three-day drop spurred by concerns over the Chinese economy and the possibility of even tighter U.S. monetary policy.

West Texas Intermediate was little changed above US$79 a barrel after shedding more than four per cent this week. Worries over top importer China's post-pandemic recovery have taken center stage, despite vows of support from policymakers. That's hurt appetite for risk assets including commodities.

In the U.S., Federal Reserve officials remained concerned that inflation would fail to recede and that further interest rate rises could be needed, according to minutes from the central bank's July meeting. Higher borrowing costs may hurt energy demand, while supporting gains in the U.S. dollar.