Oil futures edged slightly higher on Wednesday on hopes for improved Chinese demand while uncertainty about how a Western cap on Russian oil prices would play out kept markets on edge after a sharp fall in the previous session.
Brent crude futures gained 13 cents, or 0.16%, to $79.48 a barrel, after they fell below $80 for the second time in 2022 during the previous trading session, Money.usnews.com reported.
US crude futures clawed back earlier losses and were steady from the previous close at $74.25 a barrel.
Brent's slump on Tuesday was the largest daily decline in prices since late September, which have traded in a $62 range this year.
Expectations of rising China demand continued to be a positive driver, as the country posted fewer new Covid-19 infections for two consecutive days.
"China has rapidly eased Covid-19 restrictions, which may boost demand," markets analyst Leon Li at CMC Markets said in a note.
China's yuan also firmed against the US dollar on Wednesday as investors shrugged off much weaker-than-expected export and import data and awaited a government announcement on more Covid-19 easing measures that could revive the sluggish economy.
A potential drawdown in US crude stockpiles of around 6.4 million barrels, according to API figures, also gave some support on the supply front.
