Brent and WTI oil rise more than 12%
Oil surged more than 12% as China planned to start buying up cheap crude for its strategic reserves, adding to tentative signs of growing risk appetite across financial markets that’s propelling prices higher.
Brent crude for June settlement rose $2.59, or 10.5%, to $27.33 on the ICE Futures Europe exchange as of 8:07 a.m. London time after surging as much as 12.7%. West Texas Intermediate for May delivery gained $1.76 to $22.07 on the New York Mercantile Exchange after adding as much as 11%.
Futures extended gains as Beijing instructed government agencies to start filling state stockpiles after oil plunged 66% over the first three months of the year. China’s move comes as the physical crude market shows deepening signs of strain as supply explodes and demand collapses due to the coronavirus, Bloomberg reported