Oil prices rose for the sixth consecutive session amid broader gains in stocks ahead of testimony from Federal Reserve Chairman Jerome Powell that would provide clues on the way forward for tightening monetary policy.
WTI crude rose toward $81 a barrel after closing Monday at a five-week high as futures advanced above the 100-day moving average, a widely watched technical indicator.
Powell will begin two days of testimony before the Senate and House of Representatives committees in Washington later on Tuesday.
“With oil currently getting support from its 100-day moving average, it looks like prices may be heading to retest the $90 level,” said Yip John Rong, market analyst at AG Asia in Singapore.
Challenges facing the oil market
Crude oil had a bumpy year, weighed down by concerns about further interest rate hikes by the Federal Reserve and bullish expectations for Chinese demand post-Covid zero. However, the world’s largest oil importer has set a cautious economic growth target for this year, dampening some of the optimism in the outlook.
Traders also track Russian energy flows in the wake of sanctions imposed over the war in Ukraine. They appear to be resilient so far, as the CEO of the “Genover Group” said that Russia’s plan to cut its oil production by 500 thousand barrels per day in March did not affect its exports yet.
the prices:
- WTI for April delivery rose 0.5% to $80.84 a barrel as of 10:24 a.m. Singapore time.
- Brent crude for May contracts rose 0.5% to $86.63 a barrel.