Crude Continues Trending Higher, Focus On Fed’s Powell

Oil prices are higher for the sixth consecutive day in line with better equity sentiment. WTI rose 1% on Monday and is now up a further 0.3% during APAC trading to around $80.66/bbl, while Brent is also up 0.3% at $86.41. Hawkish comments from Fed Chairman Powell later could weigh on crude though. The USD index is currently down 0.1%.

• WTI reached a peak of $80.94 earlier following a low of $80.40. It broke resistance at $80.78 but couldn’t hold it. Key resistance is at $82.89, the January 23 high. It is above its 100-day moving average.
• Brent hit a high of $86.75 following a low of $86.19, while off the highs it is still approaching its 200-day moving average. It broke resistance of $86 but couldn’t sustain a break of $86.55, the February 13 high.
• Reports are indicating that Russia’s announcement to cut output by 500kbd in March has not yet impacted shipments.
• Later Fed Chairman Powell appears before the Senate banking panel. His comments will be watched closely for clarification on the monetary policy outlook but he is expected to say that the terminal rate will be higher than expected at the last meeting. This would be negative for crude. He appears before the House on Wednesday. The data calendar is light with only API inventory data, US wholesale inventories and consumer credit scheduled.