Oil has had a bit of a melt-up (yes, up) in late Asian trading, and is eyeing its biggest weekly gain in three months.
In early European trade Brent crude, the international benchmark, was up 4.9 per cent at $30.68 a barrel, while West Texas Intermediate was up 4.3 per cent at $30.80. That builds upon Thursday’s gains of more than 5 per cent for both benchmarks.
That has put Brent on track for a gain of 6.4 per cent this week, which will be its first advance in four weeks and its biggest since a 9.4 per cent jump in the week ended October 9.
WTI is up about 5.1 per cent for the week, also its first weekly gain in four weeks, but on track for its biggest since a 9.7 per cent rise in the week ended December 25.
It was only Wednesday that WTI hit a fresh 12-year low of $26.19 a barrel, while Brent, similarly, got as low as $27.10.
Comments on Thursday from the chairman of Saudi Aramco, Saudi Arabia’s state oil company, at the World Economic Forum in Davos that drop in oil prices to below $30 a barrel was “irrational” and that prices should recover in 2016 seem to have helped the mood.
Also helping overall risk appetite was the European Central Bank striking a dovish tone, and raising market expectations it will add monetary stimulus as soon as its next policy meeting in March.
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