Oil is now flying, but why?

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The oil price it returned to trading sharply after the earthquake that hit the market hard yesterday.

The listing of the WTIin particular, it has achieved double-digit percentage progressions and has attempted to cancel as much as possible part of the recent losses.

Even the price of oil Brent he pressed on the accelerator pedal albeit with slightly less noticeable performances than those of his colleague.

Because the oil price is going up

After the bad performances of the last three days, determined both by the coronavirus that from the energy war started by Russia and Saudi Arabia, the quotations of WTI and Brent have raised their heads.

The price of oil managed to take a breath as the markets began to evaluate the moves of the world central banks with less skepticism. Last night, just to give an example, the ECB has convened an emergency meeting in which he agreed on a new maxi Quantitative Easing.

How long will the rise last?

Analysts say price gains will only prove temporary and investors will fear both the slump in demand and the lack of action OPEC, whose cuts currently in force will expire later this month.

“From April 1st, about 4 million additional barrels per day they could break into the market, potentially pushing the oil price towards the $ 10 range, ”

Jefferies analysts said they stressed the need to take action to prevent this scenario.

More or less of the same opinion Edward Moya, senior market analyst of OANDA New York, according to which the fiscal and monetary stimuli will fail to bring energy demand back to normal levels.

At the time of writing, in the meantime, the price of Brent oil and the price of the WTI are rising respectively by 6% and 11.5% on the share of $ 26.3 and $ 23.2.

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