Oil prices are rising this morning after Saudi Arabia unexpectedly increased prices of its main grade to buyers in Asia and broader financial markets rebounded from Monday’s losses.

Traders will be closely watching Powell's testimony before the House Financial Services Committee for more detail on the possible timing of interest rate cuts that the market is expecting this year.

"Public enemy No 1 of a protracted rally and the $90/bbl oil price is the uncertainty surrounding interest rate cuts," Tamas Varga, an analyst at oil broker PVM, wrote in a Tuesday research note.

"The Fed chair's testimony and the ECB interest rate decision on Thursday could revive hopes for a June reduction in borrowing costs," Varga said.

Crude was supported technically (at its 200DMA) and by last night's smaller than expected crude build.

API

DOE

Large product draws dominated the official data with a crude build that met expectations...

Source: Bloomberg

The Biden administration added to the SPR last week once again, +706k barrels...

Source: Bloomberg

US Crude production declined by 100k b/d...

Source: Bloomberg

WTI traded up just shy of $80 ahead of the official data and extended gains after...

The light crude build and products draws come as traders mull a weakening Chinese economy, after the No.1 importer again steered clear of stimulus measures amid a debt crisis in its real-estate sector as it set a 5% growth goal for its gross domestic product this year.

"China's GDP growth target remained modest and none of the announcements so far have been able to spark optimism," Saxo Bank noted.