WTI consolidates a 20% gain, holds near $25.00
- meCrude oil prices surged, after another crash; extreme volatility is the new normal.
- WTI climbed to $25.80, before pulling back to $25.00.
Crude oil prices are rising sharply on Thursday but still not enough to erase Wednesday’s losses. As of writing, WTI trades at $25.00 a barrel, up 21% for the day.
The recovery in crude oil takes place from the lowest level in almost 30 years and also after more fiscal and monetary stimulus around the world. Equity prices in Wall Street are also up, adding more support to the recovery. The Dow Jones gains 1.70% and the Nasdaq 3.48%.
Despite the recovery, some analysts consider the price war could send prices even below the recent bottom. A quick recovery in equity markets could help prices stabilize in the short-term.
US considering intervention in the crude war
According to the WSJ, US diplomatics are trying to get Saudi Arabia to cut its production level while at the same time, the White House might look for further sanctions on Russia.
“The new strategy follows lobbying from U.S. oil companies asking for the Trump administration to ramp up its diplomatic intervention in the oil markets,” the WSJ reported, according to people familiar with the matter. It added, “US officials are also exploring more long-term solutions, especially more collaboration with Saudi Arabia to keep it from returning to an alliance with Russia.”