Crude oil rally intensifies; WTI surges 5% to top $50/bbl



Crude oil prices roar back after earlier paring gains as government data showed U.S. crude stocks fell less than expected last week, with the WTI benchmark topping $50/bbl for the first time since mid-December on continued optimism over U.S.-China trade talks and Saudi production cuts; WTI +4.9% to $52.23/bbl, Brent+4.3% to $61.26/bbl.

"Oil has yet to have a losing session in 2019, and the near-term path of least resistance is still higher based on momentum and near-term technicals," according to the Sevens Report. "However, the longer-term outlook is still unclear as production/export cuts won't be enough to curb another bout of broad market volatility."

But PVM Oil analyst Stephen Brennock warns against excessive optimism, saying "buyers have placed all their betting chips on the U.S. and China resolving their trade spat" and noting that a failure to secure a meaningful breakthrough would spark a turnaround in sentiment.


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