Oil Extends Gain for Sixth Session Ahead of Fed Chair Testimony

(Bloomberg) -- Oil climbed for a sixth session amid a broader rally in stocks ahead of a testimony from Federal Reserve Chair Jerome Powell that will provide clues on the path forward for monetary tightening.

West Texas Intermediate rose toward $81 a barrel after closing at a five-week high on Monday as futures advanced above the 100-day moving average, a widely-watched technical gauge. Powell will begin two days of testimony before the Senate and House committees in Washington later Tuesday.

“With oil currently finding support from its 100-day moving average, it seems that prices may head to retest the $90 level,” said Yeap Jun Rong, a market strategist at IG Asia Pte in Singapore.

Crude has endured a bumpy year, whipsawed by concerns over further interest rate hikes from the Fed and a bullish outlook for Chinese demand following the end of Covid Zero. However, the world’s top oil importer has set a cautious economic growth target this year, denting some optimism in the outlook. 

Traders are also tracking Russian energy flows following sanctions for the nation’s war in Ukraine. They seem to be resilient so far, with Gunvor Group Chief Executive Officer Torbjorn Tornqvist saying Russia’s plan to cut its oil output by 500,000 barrels a day in March isn’t yet affecting its exports.

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