NYMEX May crude settled 16 cents higher at $107.03/barrel Monday, with underlying support from US Federal Reserve Chairman Ben Bernanke's call for a continuation of policies to ensure economic growth, reduce unemployment and backstop a weak job market.
ICE May Brent ended 52 cents higher at $125.65/b. In products, NYMEX April heating oil settled 1.87 cents higher to $3.2288/gal, and April RBOB settled up 3.14 cents at $3.4166/gal.
Bernanke said the Fed was likely to keep its stimulative policies in place, despite improvements to the labor market.
"A wide range of indicators suggests that the job market has been improving, which is a welcome development indeed," he said in a speech, according to AFP.
Gene McGillian, analyst at Tradition Energy, said the oil complex posted small gains after the Fed comments, but failed to restart Friday's rally and moved in rangebound trade throughout the session.
"[NYMEX crude] needed to cross $108.25, but didn't get there, and continued to form a base," McGillian said, referring to a trading band for the front-month contract between $105-$108/b.
Eyeing the week ahead, McGillian said the market will be looking for a catalyst to push beyond the range, noting durable goods and GDP numbers are to be released Wednesday and Thursday, respectively.
Phil Flynn of PFGBest said in the morning that crude futures and US equities were given a boost by Bernanke, but any clear direction for the market was lacking.
"Perfect words you don't want to hear -- things are good, but not perfect," Flynn said of Bernanke's speech.
The Dow Jones Industrial average was up over 158 points by the NYMEX settle, while the S&P 500 Index was up over 18 points.
