Oil drifts lower on concern Chinese stimulus will fall short

Oil switched between gains and losses after China began a gradual roll-out of measures to aid its economy.

Brent futures were little changed, after earlier adding as much as 1.4%. 

While Chinese banks reduced their benchmark lending rates on Tuesday, the country’s gradual roll-out of broader measures for its ailing economy is fueling a debate among traders over how far authorities will go to aid growth. The market for crude in Asia has firmed in recent days on a flurry of buying by a giant Chinese refiner, though the country’s biggest oil and gas producer cut its demand forecast for this year. 

Oil has struggled for direction in recent weeks. A flood of supply from Russia and Iran has kept availability of crude elevated. Last month, China imported a record volume of oil from Russia and the cargo-transfer hub of Malaysia.