Economists have predicted that the Bank of Japan will maintain its highly lenient policy next Friday.
Most market participants expect the Fed to leave interest rates unchanged and boost rate hikes by the Fed dollar, making dollar-denominated goods more expensive for holders of other currencies affecting oil prices, so the pause for rate hikes could be bullish.
China’s economic data caused fear, amid fears of growing demand in the world’s largest crude importer and the central bank slashing its short-term lending rate on Tuesday to restore market confidence.
Demand fears offset a temporary increase in oil prices from Saudi Arabia’s pledge to cut more production in July.