Bob Yawger, head of energy futures at Mizuho bank, said a close above the 200-day moving average “generally stops (speculative) shorts (and) attracts traders looking for new entry points.”
In China, the world’s No. 2 economy and No. 2 oil consumer, leaders pledged to step up support for the economy amid a tortuous post-crisis recovery, focusing on boosting domestic demand, signaling further stimulus measures.
Deutsche Bank analysts said China’s oil demand “is now exceeding expectations,” which “helps to increase confidence in China’s ability to contribute (two-thirds) of oil demand growth this year.”
“Crude prices are tentatively breaking as expectations remain that the oil market will remain tight despite all the emerging global weakness. The rally in crude oil is impressive as it comes as Europe looks very weak right now, the US is slowing and China is not expected to deliver any major stimulus this week,” said Edward Moya, an analyst at OANDA.
With information from Reuters