The WTI ends on a jump of 2.72 dollars and crosses the bar of 15 dollars. Brent crude ends up 10% to 22.54 dollars.
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The price of a barrel of oil quoted in New York jumped 22% Wednesday, thanks to a better than expected report on US stocks and prospects of deconfinement in the United States and around the world.
The price of a barrel of WTI for delivery in June increased by 2.72 dollars to finish at 15.06 dollars. It rose by more than 35% during the session.
In London, a barrel of Brent North Sea crude for June delivery rose 10% or $ 2.08 to $ 22.54.
Crude oil reserves in the United States stood at 527.6 million barrels as of April 24, according to a report released Wednesday by the American Energy Information Agency (EIA), an increase of 9 million barrels.
Analysts had forecast a larger median increase of 11.9 million barrels.
Gasoline prices also fell 3.7 million barrels as analysts forecast an increase of 2.5 million, a sign of stronger demand despite the economic slowdown caused by the coronavirus.
“With North American consumption picking up thanks to the gradual reopening of the economy and with the rapid fall in world production of black gold in May, stocks, which have continued to swell, will fill up at a slower pace, “predict analysts at TD Securities.
The latter believe that there is always a risk that the storage becomes full and that WTI contracts for the earliest maturities in time fall below 10 dollars.
Last week, the contract for delivery in May of the benchmark barrel to the United States ended in negative for the first time in its history.
TD Securities analysts believe however that the production cuts recently announced by the main exporting countries as well as the natural market adjustments will allow the WTI to stabilize around 30 dollars from the third quarter.
“Central bank policies and hopes for a relatively quick end to the crisis – or at least a deconfinement -” also supported oil prices on Wednesday, according to Carlo Alberto De Casa, analyst at ActivTrades.
Pressed to revive the economy, several European countries have cautiously unveiled progressive and reversible deconfinement plans so as not to relaunch the epidemic of coronavirus which continues to wreak havoc in the world in terms of health and economy.
Oil prices “are rebounding at the moment but the carnage is not over,” said Oanda analyst Craig Erlam, however.
US Central Bank chief Jerome Powell painted a bleak picture on Wednesday, announcing that the US economy is likely to “fall at an unprecedented rate in the second quarter.”
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