WTI oil rallies to $75.70 on China’s call for securing supplies
- WTI futures bounce up to $75.70 on China's will to secure supplies.
- Crude oil futures turn positive on daily charts.
- Oil prices lost ground following an unexpected increase in US inventories.
Front-month WTI futures have shrugged off the negative tone seen earlier today to jump nearly 3% during Thursday's US trading session. Reports that China has prioritized securing oil supplies for this winter have sent oil prices surging.
Crude oil resumes uptrend as China orders to stock supplies
Oil prices have bounced more than $2 in less than an hour, erasing previous losses and turning positive on daily charts following reports of China’s intentions to secure supplies at all costs, concerned about the possibility of an energy shortage.
A report from Bloomberg affirms that Vice Premier Han Zheng, responsible for the nation’s energy sector and industrial production. has ordered Chinese top state-owned companies to guarantee oil supplies in an emergency meeting held earlier this week.
US crude oil futures were about 2,3% down on the day, following an unexpected increase in US inventories. The Energy Information Administration reported an increment of 4.6 million barrels on the week of September 24 against market expectations of a 2.33 million barrel draw.
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Author
Guillermo Alcala
FXStreet
Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.
