Oil edged lower after a four-day rally of almost 6% as traders took stock of the advance and looked toward a US interest-rate decision.
West Texas Intermediate traded near $79 a barrel after closing at the highest level since mid-April. The gains have been fueled by signs that the global market is starting to tighten, and moves by China’s leadership revive growth in the world’s largest crude importer after its recovery faltered.
The Federal Reserve is expected to raise borrowing costs to the highest level in 22 years later Wednesday, while at the same time retaining a tightening bias that signals the possibility of another move upward later this year. Higher rates risk slowing the economy and hurting energy consumption.
Read the full story on Bloomberg here.