U.S. benchmark West Texas Intermediate (WTI) crude soared +24% on Thursday displaying its biggest one-day gain on record, as it recoups back more than half of the losses witnessed on Wednesday.
The rebound was on the heels of three straight days of selling, including Wednesday’s -24% plunge that took (WTI) to the lows posted back in 2002 at $20.45. It was WTI’s third-worst day on record.
Given WTI’s -60% decline this year, a smaller gain, of course, now accounts for a much larger percentage move.
Meanwhile, International benchmark Brent crude rose 14.6%, to settle at $28.50 per barrel.
Due to both the supply and demand, in worldwide travel and business activity has contributed to weighing demand, along with the unexpected move from producers Saudi Arabia and Russia ramping up production.
Additional to this, yesterday’s gains were provided after the Trump administration said it would buy oil to top up the nation’s reserves and support American drillers hurt by the coronavirus crisis along with the production hikes by Saudis.
From the technical outlay, there is still a lot of work needed to keep yesterday’s gains in check.
With the resistance crushed at $23.70-90 to $24.80-95 now shifts the attention to $28.60-85.
A move above $31.00 should trigger stop-losses, (if the market is caught short (sold)) and see a re-match of $35.00. Reassess from there.
Broader support remains from $16.00-$19.00 (on the wide).