The price of oil increased for a sixth consecutive trading session, which coincided with a larger surge in stocks ahead of a testimony by the chair of the Federal Reserve, Jerome Powell, that will provide hints on the path forward for the Federal Reserve’s plan to tighten monetary policy.
After finishing at a five-week high on Monday, West Texas Intermediate futures pushed over the 100-day moving average, which is a highly monitored technical metric.
As a result, the price of a barrel of West Texas Intermediate moved closer and closer to $81. In Washington, Powell will begin his evidence before the Senate and House committees later on Tuesday. The hearings are scheduled to last for two days.
“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.
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- Despite China’s Rebound Weighing On The Fed, Oil Was Predicted To Rise This Week
The price of crude has had a turbulent year, as it has been rocked back and forth by conflicting factors such as worries regarding additional interest rate hikes from the Fed and a bullish forecast for Chinese demand following the conclusion of Covid Zero. But, the leading oil importer in the world has set a conservative economic growth target for this year, which has dampened some of the euphoria surrounding the prognosis.
As a result of the sanctions imposed on Russia for its involvement in the conflict in Ukraine, traders are closely monitoring the country’s energy supplies.
The Chief Executive Officer of Gunvor Group, Torbjorn Tornqvist, stated that Russia’s intention to lower its oil output by 500,000 barrels per day in March isn’t currently harming the country’s exports, which indicates that they have shown some degree of resiliency so far.
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