Oil retreats after four days of gains

Oil fell after a four-day rally of nearly 6% as investors eyed a U.S. interest rate decision. U.S. crude traded at $79 a barrel after closing at the highest level since mid-April. The gains were supported by signs that the global market is tightening, and moves by China’s leadership have revived growth in the world’s largest crude importer after its recovery faltered. The Fed is expected to raise borrowing costs to a 22-year high on Wednesday, while also maintaining a tightening trend that points to the possibility of another move higher later this year. Higher rates risk slowing the economy and hurting energy consumption. Crude has been lifted this month by supply curbs from fellow OPEC+ members Saudi Arabia and Russia and a pullback in exports from Moscow. That helped prices close above their 200-day moving average this week, while U.S. crude’s immediate spread dipped deeper, creating a bullish pattern that signals tight supply. The industry-funded American Petroleum Institute reported a mixed picture, showing a 1.3 million barrel increase in crude inventories nationally last week but a 2.3 million barrel decrease in the key oil storage hub of Cushing, Oklahoma. Data from AlphaBBL also showed a decline in Cushing. Official figures are due on Wednesday.