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(Bloomberg) -- Oil rose for the first time in four sessions after an industry report pointed to a fifth week of drawdowns in US stockpiles.

Brent crude for October traded above $78 a barrel after tumbling by 4.1% over the prior three days, with West Texas Intermediate near $75. The American Petroleum Institute said crude inventories fell by 4.5 million barrels last week, according to people familiar with the data. If confirmed by official figures later on Wednesday, it would mark the longest steak of declines since January 2022.

Crude is set for its largest monthly drop this year, weighed down by a poor demand outlook in China, the biggest importer. Futures are still modestly higher this year on the back of OPEC+ supply curbs and expectations the Federal Reserve will start lowering interest rates soon.

The central bank is widely expected to keep rates on hold when it meets later Wednesday, and traders will look to Chair Jerome Powell’s remarks after for confirmation of bets that they will be cut in September. They will also be watching developments in the Middle East, where Israel said it killed a senior Hezbollah commander with an airstrike on Beirut in response to an attack in the Golan Heights that left 12 young people dead over the weekend.

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