Oil Rates Stage Rebound After Days of Harsh Selling

On Thursday oil rates retreated from their all-time lows, as investors got a solid influx of central bank and government incentives in an effort to counter economic effects from the Covid-19, with Russia seeking for higher prices.

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The front-month April WTI crude futures jumped by 4.16 percent, to  $23,33 per barrel, while Brent oil futures gained 1.81 percent, to $26,94 per barrel at 0905 GMT.

Recall, the oil prices for WTI plunged more than 24 percent during the prior settlement, reaching the lowest level at $20.37  per barrel on the New York Mercantile Exchange, the rate, which had been registered once in a distant 2002, in February. Oil, inflation-indexed, is trading close to the bottom level since March 1999, according to Dow Jones Market reading.

As for the international benchmark Brent , it lost on Wednesday 13 percent of its value, closing session at $24,88 per barrel. 

Oil prices reversed movement upwards due to a wave of emergency moves from the major central banks.

Thus, for example, the Fed announced late Wednesday additional incentive moves to stabilize U.S. financial markets heavily affected by the sudden economic activity decay, triggered by the coronavirus outbreak. The Federal Reserve expanded support measures to include money market mutual funds.

Meantime, the ECB in its turn launched a fresh, widened plan to purchase up to €750B ($820B) in government and private sector notes and commercial paper by the end of the current year. The moves followed days after last week’s incentives efforts by the central bank. 

The RBA in its turn, cut again its interest rates in March.

Source: Marketwatch