Oil Advances Ahead of Fed Testimony While Mideast Risks Linger - Bloomberg

Oil Advances Ahead of Fed Testimony While Mideast Risks Linger - Bloomberg:

Oil continued a subdued rally Tuesday as investors await guidance from the Federal Reserve and the outcome of Iran’s latest Middle East standoff.

Futures closed 0.3% higher in New York, the third straight day of tiny advances for crude amid an uncertain economic outlook. Fed Chairman Jerome Powell is scheduled to testify to Congress on Wednesday and Thursday, with many investors wondering if last week’s healthy jobs report lessened the likelihood of an interest rate cut to boost the economy.

Investors are also awaiting Wednesday’s release of weekly data on U.S. crude stockpiles. Analysts in a Bloomberg survey expect inventories to fall by 2.5 million barrels, according to a Bloomberg survey, in what would be the fourth decrease in a row.

West Texas Intermediate oil for August delivery closed 17 cents higher at $57.83 a barrel on the New York Mercantile Exchange. The contract has gained 0.3% or less each of the last three sessions. Brent for September settlement added 5 cents to $64.16 a barrel on the ICE Futures Europe Exchange.