Oil jumped the most since early February and restored key technical levels after U.S. government promises to protect bank depositors calmed markets.

The commodity snapped its longest stretch of being oversold on the nine-day relative strength index since November 2021 as Treasury Secretary Janet Yellen said the government could take drastic actions to protect depositors at smaller lenders. Crude prices were further boosted by Russia saying it will extend its 500,000-barrel-a-day crude output cut through June.

Prices have been stuck in a narrow alley in 2023 before breaking lower as banking turmoil amplified recession fears. Still, senior figures in the industry predict prices rallying to range between US$80 and $140 a barrel for the second half of the year.

The Federal Reserve’s interest rate decision on Wednesday and its expected effect on the economic environment is likely to move crude prices further, said Vikas Dwivedi, global oil and gas strategist at Macquarie Group Ltd.

“If these big macro factors start to really turn the corner, oil will rally,” Dwivedi said.

Prices:

• WTI for April delivery, which expires Tuesday, rose US$1.69 to settle at $69.33 a barrel.
• The more-active May contract advanced US$1.85 to $69.67.
• Brent for May settlement gained US$1.53 to settle at $75.32 a barrel.