WTI consolidates gains above $75.50 amid the hope of a China stimulus plan

• WTI consolidates gains above $75.50 in the early Asian session.
• Market players expect the Federal Reserve (Fed) to be nearing the end of its policy tightening cycle.
• China's GDP figure raises concern, but the hope for a stimulus plan boosts the WTI price. 

Western Texas Intermediate (WTI), the US crude oil benchmark, is trading around the $75.52 mark so far this Wednesday. WTI consolidates gains and bounces off Monday’s low near $73.80 on the possibility of the end of its policy tightening cycle by the Federal Reserve (Fed) and the hope for stimulus plans in China.

Market players anticipate that the Federal Reserve (Fed) is nearing the end of its policy tightening cycle. "The US Federal Reserve will raise its benchmark overnight interest rate by 25 basis points (bps) to the 5.25%–5.50% range on July 26," according to all 106 economists polled by Reuters between July 13 and July 18. It’s worth noting that higher interest rates raise borrowing costs, which can slow the economy and diminish oil demand.

Talking about data, the American Petroleum Institute (API) said on Tuesday that crude oil stockpiles in the United States fell by 797,000 barrels this week after increasing by 3.026 million barrels the previous week.

On the Chinese docket, the Gross Domestic Product (GDP) came in at 6.3% annually, worse than expected at 7.3% and 4.5% prior. The data raised concern about an economic slowdown in the world's second-largest oil consumer. However, China’s Commerce Ministry stated on Tuesday that a series of measures will help boost the consumption of household consumer goods and services. This, in turn, supports further upside in the WTI price.

Later in a week, the US Housing Starts and Unemployment Claims will be released. Also, oil traders will watch crude oil inventories data from the Energy Information Administration (EIA) and closely monitor the headlines surrounding the US-China relationship. The renewed tension between the world’s largest economies would significantly impact the WTI price.