Oil swings with China's demand outlook and Fed remarks in focus
BNN Bloomberg
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.
West Texas Intermediate for August delivery edged lower toward US$71 a barrel after dropping as much as 0.6 per cent early in the session. While China has taken a series of incremental steps to aid growth, there is concern that its moves may lack sufficient punch.
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.
