The search for balance in oil

Oil rose, offsetting some of Tuesday’s decline on concerns about the outlook for the global economy. U.S. crude traded above $77 a barrel after falling 2.2 percent on Tuesday in a week that has so far struggled to find meaningful price direction. An industry group added some positivity by reporting a big draw on U.S. crude inventories, while sentiment in broader financial markets was boosted by fears of a U.S. banking crisis that have resurfaced. Crude is near where it was before the Organization of the Petroleum Exporting Countries and its allies imposed shock production cuts in early April. Asian crude fundamentals continued to weaken this week, as deteriorating oil refining profits over the past few weeks prompted factories to consider cutting processing rates. The Federal Reserve is set to assess the latest reports on U.S. employment, inflation and consumer spending this week ahead of a May policy meeting that will help investors gauge the strength of the U.S. economy. Also, some of the world’s largest oil companies, including Chevron Corp. and Exxon Mobil Corp., are scheduled to report first-quarter earnings on Friday.