WTI Crude Oil Prices Surge as Markets Look Forward to Stimulus Efforts
Early on Thursday, WTI crude oil prices experienced a sudden boost, jumping almost 20% higher as recent stimulus measures announced by governments and central banks reassured markets about attempts to prevent a recession in the global economy. At the time of writing, WTI crude oil is trading at around $21.77 per barrel.
Thursday’s gains come after WTI crude oil lost nearly 25% of its value in the previous session over rising concerns about the coronavirus pandemic and its economic impact. When economic growth weakens, the demand for crude oil deteriorates, and this sentiment has been keeping oil prices under pressure lately.
The latest round of stimulus unveiled by the ECB in the form of the emergency bond purchase worth 750 billion euros helped support crude oil prices and offered some relief to traders. However, the risks of a global economic recession continue to dominate the sentiment in financial markets as the number of coronavirus cases continue to rise all around the world.
Crude oil prices have weakened significantly in recent days in anticipation of the upcoming supply glut when Saudi Arabia floods the market with cheap oil even as demand continues to remain anemic. Analysts expect some form of stabilisation in oil prices only when the financial markets turn more optimistic about the various stimulus measures being announced.
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