By Rowena Edwards<\/p>\n\n\n\n
LONDON (Reuters) -Oil prices stabilised on Wednesday ahead of Federal Reserve Chair Jerome Powell’s congressional testimony later in the day and as data showing British inflation remained sticky raised the possibility of a hawkish Bank of England policy decision this week.<\/p>\n\n\n\n
Brent\u00a0futures were flat at $75.90 a barrel by 0929 GMT and U.S. West Texas Intermediate (WTI) crude futures edged up 6 cents, or 0.08%, to $71.25.<\/p>\n\n\n\n
British inflation defied expectations that it would slow and held at 8.7% in May, data showed on Wednesday, putting yet more pressure on the BoE a day before it is forecast to raise interest rates for the 13th time in a row.<\/p>\n\n\n\n
“Countries are struggling to rein in inflation… and that’s going to dampen growth and threaten recessions across the globe,” said Craig Erlam, senior markets analyst at OANDA.<\/p>\n\n\n\n
The main market focus is on Fed officials due to speak later in the day, with Chair Powell’s congressional testimony on the economy on Wednesday and Thursday the highlight.<\/p>\n\n\n\n
Two Fed policymakers and an economist nominated to join them on the central bank’s Washington-based board on Tuesday said their focus is on bringing down too-high inflation so that the U.S. economy can get back to sustainable growth, which could bolster oil demand.<\/p>\n\n\n\n
However, should Powell prompt a hawkish return of rate cut expectations, the U.S. dollar could see some support, ING strategist Francesco Pesole said in a note.<\/p>\n\n\n\n
A stronger U.S. dollar is bearish for oil as it makes commodities more expensive for holders of other currencies.<\/p>\n\n\n\n
Oil prices drew some support from a possible drawdown in\u00a0U.S. crude\u00a0stocks, with Reuters poll among five analysts estimating that crude stockpiles fell by about 400,000 barrels on average in the week to June 16.<\/p>\n\n\n\n
Official U.S. oil inventory data from the American Petroleum Institute industry group will be released later on Wednesday and the Energy Information Administration on Thursday, with both reports delayed by a day following the Juneteenth public holiday on Monday. [EIA\/S] [API\/S]<\/p>\n