09:00 AM EST, 03/07/2024 (MT Newswires) -- Oil prices slipped early on Thursday as investors moved to cut risk after Federal Reserve chair Jerome Powell declined to offer a timetable for interest-rate cuts when testifying before Congress, saying only he expected cuts to begin this year.

West Texas Intermediate crude of April delivery was last seen down US$0.56 to US$78.57 per barrel, while May Brent crude, the global benchmark, was down US$0.54 to C$82.42.

Traders are awaiting the stimulus of lower interest rates to add demand for oil. However in the first of two days of congressional testimony, Powell said the central bank is awaiting a sustained move towards its 2% inflation target before agreeing to cut rates.

"We believe that our policy rate is likely at its peak for this tightening cycle. If the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year. But the economic outlook is uncertain, and ongoing progress toward our 2 percent inflation objective is not assured. Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation and ultimately require even tighter policy to get inflation back to 2 percent," Powell said in prepared remarks.

While Powell disappointed markets, stronger than expected demand from China is offering support following January and February import data, even as the country's real-estate sector remains in a debt crisis.

"Crude oil imports rose by 5% y/y to 88mt, though there was a seasonal decline of 5-6% from the December level. While it would be difficult to match the record oil imports of March 2023, the ramp up in oil processing after the Lunar New Year holidays should keep demand robust," ANZ Bank noted.