Oil Extends Gains Ahead of Federal Reserve Decision

Oil extended gains stemming from US data showing oil exports surged to a record level as commodity traders await the Federal Reserve decision.

(Bloomberg) — Oil extended gains stemming from US data showing oil exports surged to a record level as commodity traders await the Federal Reserve decision.

West Texas Intermediate held above $70 a barrel for the first time in a week on Wednesday. Exports of crude and refined products exploded to 12 million barrels a day, according to the Energy Information Administration, nudging prices higher with a rosier demand outlook.

Investors are waiting for the Federal Reserve decision, expected later today, and any subsequent comments by Chairman Jerome Powell for clues to how the central bank will respond in the aftermath of recent bank failures.

The turmoil drove crude to a 15-month low last week as risk appetite evaporated. Caught in the maelstrom was famed oil trader Pierre Andurand’s hedge fund, which is down 40% this year with most of the losses coming in March.

Despite the leg lower, Andurand and others remain bullish on the outlook for crude, in part due to China’s rebound from Covid lockdowns, with lofty predictions reaching $140 a barrel.

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