Oil held onto a sharp overnight gain that was driven by signs China is shifting into stimulus mode and a US plan to replenish reserves.
West Texas Intermediate traded above $69 a barrel after rising 3.4% on Tuesday, the most in more than five weeks. Beijing is considering a broad range of stimulus measures to revive China’s flagging recovery after already having taken steps to loosen monetary policy. The country also issued a fresh crude import quota for non state-owned refiners and traders for 2023.
The US is planning to buy about 12 million barrels of oil this year to refill its depleted emergency reserves, according to people familiar. Slowing inflation is also adding to expectations the Federal Reserve will pause interest-rate hikes for the first time in 15 months.
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