Global oil benchmark Brent briefly hovered above $80 U.S. on Wednesday, buoyed by China’s pledge to reinvigorate economic growth and expectations the U.S. Federal Reserve will stop raising interest rates soon.
Brent futures were up 26 cents at $79.89 a barrel, while U.S. West Texas Intermediate crude was up nine cents to $75.84 per barrel.
China’s top economic planner pledged on Tuesday it would roll out policies to “restore and expand” consumption in the world’s second-largest economy, which could boost oil demand.
In the U.S., a report on Tuesday showed retail sales rose by less than expected in June, boosting expectations the Federal Reserve will stop hiking rates after a widely expected 25-basis-point increase at its July 25-26 meeting.
Higher interest rates increase borrowing costs and can slow economic growth and reduce oil demand.
Meanwhile, the latest inflation data out of Canada and the United Kingdom that show signs of cooling have also lifted sentiment.
Meanwhile, Russia is set to reduce its oil exports by 2.1 million metric tons in the third quarter, in line with planned voluntary export cuts of 500,000 barrels per day in August, according to the Kremlin's energy ministry.
