WTI is up 4.27% at $42.25.
After a year of typing "It's too early" it feels odd to write: We're going higher.
(for a while)
Oil prices rise more than 4.5 percent as equities rally
Oil prices jumped more than 4.5 percent on Thursday after a rally in equity markets and an unexpected fall in U.S. crude inventories, but worries over the Chinese economy and a global oil glut kept the outlook uncertain.
World stock markets rose as Chinese shares recovered on hopes that government measures to stimulate the economy would pay off, while the dollar strengthened as risk aversion eased.
Oil markets moved up from six-and-a-half-year lows reached earlier this week, but investors are still worried about huge fuel oversupply, which is depressing the price of crude for immediate delivery and filling stockpiles worldwide.
"The trend is strong and down. However, do not be wrong-footed by a correction higher," PVM Oil Associates technical analyst Robin Bieber said. "Few markets head forever in one direction with no respite."
Front-month Brent LCOc1, the global oil benchmark, was up $1.80 at $44.94 a barrel by 1255 GMT, having hit an intraday high of $45.12. U.S. crude CLc1, also known as West Texas Intermediate (WTI), was up $1.60 at $40.20 a barrel.
Phillip Futures oil analyst Daniel Ang said he saw the rally as a pause in a downward trend, rather than a longer-term shift upwards. "We would not underestimate the current bearish momentum and still believe that it is possible to see prices break supports of $38 and $45 for WTI and Brent," Ang said. Standard Chartered cut its 2015 Brent forecast by $10 a barrel to $54, and slashed its 2016 forecast by $20 to $63....MORERecently:
Oil turns lower as gasoline futures drop nearly 5%
We are betting that Monday's $37.76 print was the low. (for a while)"Oil catches breath near six-and-a-half-year lows after falls"
"Energy Stocks Approaching Fair Value (XLE; XOP)"
"Oil Price Decline May Be Due For a (Brief) Pause"