Oil Advances After Fed Signals Possible Return to Rate Cuts

Oil advanced, solidifying gains from the previous week, as a move above key technical levels helped extend a rally sparked by signs that the Federal Reserve will resume cutting interest rates.

West Texas Intermediate climbed 1.8% to approach $65 a barrel and reach the highest settlement price in three weeks, while Brent closed near $69 a barrel. Fed Chair Jerome Powell on Friday signaled in a speech that the central bank could cut interest rates as soon as its September policy meeting. The comments boosted crude futures on expectations that a rate cut would boost the US economy and raise oil demand.