Crude oil futures breached past $100 a barrel the highest close in 2014 buoyed by optimism in the equity markets and strong demand. Investors were waiting for the testimony in Congress this week by Yellen, who took over from Bernanke as chair of the US central bank.
March crude oil is trading up 1 cent at $ 100.07 per barrel on the New York Mercantile Exchange. Yesterday, it ended up 18 cents, or 0.2%, to settle at $100.06 a barrel after tapping a high of $100.55 during the session. Yellen will brief legislators on the state of the US economy and the direction of monetary policy.
On Friday, prices jumped 2.1% to settle at $99.88 a barrel after briefly touching a high of $100.06 in the last few minutes before the close on Nymex.
Meanwhile, oil production at the Organization of the Petroleum Exporting Countries edged higher in January — by 150,000 barrels a day to 29.87 million barrels a day, according to a Platts survey of OPEC and oil industry officials and analysts released Monday.
Libyan production rose to 530,000 barrels a day in January following the restart of output from the Sharara field. Libyan output was at 250,000 barrels a day in December.
MCX February crude oil futures may open today’s session near Rs 6250 levels with resistance near Rs 6275 levels and support near Rs 6200 levels.
Yellen’s first hearing will be today in the House of Representatives, with attention on how she might view a second consecutive weak monthly jobs report released Friday, and how that might affect the Fed’s draw down of its stimulus operation.