Oil prices rebounded in early trading, Wednesday, to recover from losses incurred in the previous two sessions, supported by expectations of the US Federal Reserve's exit with hawkish statements later in the day and a possible decline in US crude stocks, which outweighed concerns related to Chinese demand.
Brent crude futures rose 23 cents to $76.13 a barrel, and West Texas Intermediate crude futures rose 26 cents to $71.45 a barrel by 0611 GMT.
ANZ Research said in a note, We expect the Fed chairman to provide a hawkish semi-annual testimony to Congress that reflects the FOMC's average expectation of higher interest rates in the coming months and more resilient inflation in the near term.
Powell's congressional testimony later in the day is likely to provide clues to the future moves of interest rates in the world's largest economy.
Prices were also supported by a possible decline in US crude stocks, as a Reuters poll of five analysts predicted a decrease in crude stocks by about 400,000 barrels on average in the week ending June 16.
Gains were limited by uncertainty about the speed of recovery in demand from China, the world's largest oil importer, but analysts are optimistic that demand will rise soon, supported by lowering basic loan rates.
