US oil surges 20% after three-day sell off

Friday, 20 March 2020 00:00 - - {{hitsCtrl.values.hits}}

New York (Reuters): US oil prices rose 20% on Thursday, recouping some losses from a sell-off that drove prices to near 20-year lows, but analysts saw the rebound as a brief reprieve, anticipating more weakness as the coronavirus outbreak takes its toll on global demand.

The outbreak has put pressure on the market as schools and businesses have shuttered, suppressing economic activity around the globe. At the same time, the price war between Saudi Arabia and Russia is flooding markets worldwide with cheap oil.

US crude and global benchmark Brent, both of which have lost half their value in less than two weeks, got some respite on Thursday as investors across financial markets assessed the impact of massive central bank stimulus measures.

Brent crude LCOc1 was up $2.00, or 9%, at $26.88 a barrel by 11:51 a.m. EDT (1551 GMT), having plunged to $24.52 on Wednesday, its lowest since 2003.

West Texas Intermediate (WTI) crude CLc1 gained $3.85, or 19%, to $24.22 after dropping nearly 25% to an 18-year low in the previous session.