Crude oil is trading at its highest in six weeks on optimism that the Federal Reserve`s new head, Janet Yellen, will signal during her first testimony on monetary policy and economic outlook since she took office a little more than a week ago that stimulus will remain for now. These expectations improved the outlook for fuel demand in the US, the world’s biggest oil consumer, as it may sustain growth. The softer-than-anticipated jobs report on Friday sustains believes that the country’s stimulus will be kept in place. “If Yellen, as expected, gives a dovish testimony, it will give some assurance to oil markets. The greenback would be likely to weaken further, which would help lift demand for crude oil�, said Chee Tat Tan from Phillip Futures. Also sustaining oil prices is speculation that US distillate stockpiles shrank as cold weather in the US boosted demand for heating fuels. Distillates probably declined by 2.13 million barrels last week the Energy Information Administration report may show tomorrow. Crude stockpiles probably expanded by 2.6 million barrels and gasoline probably slid by 250,000 barrels the EIA report may show tomorrow. The American Petroleum Institute (API) will publish its own data later today.

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