West Texas Intermediate rose above $79 a barrel after gaining more than 1% on Tuesday. While the US central bank is expected to deliver another interest-rate hike at Wednesday’s meeting, it’s likely to be just half the size of the 50-basis-point move agreed in December as inflation shows signs of cooling.
Crude capped a third monthly loss in January even amid a wave of optimism that China’s ending of its strict Covid-Zero policy will rekindle demand in the world’s largest crude importer. A range of indicators have pointed to increased consumption as mobility and industrial activity start to pick up.
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