Oil holds biggest jump in six weeks on signs of China stimulus
BNN Bloomberg
Oil was steady after jumping the most in six weeks on Thursday as a weaker dollar and expectations for more stimulus in China outweighed concerns over higher interest rates in the U.S. and Europe.
West Texas Intermediate held above US$70 a barrel after jumping 3.4 per cent in the previous session, putting it on course for a modest weekly gain.
In a volatile week for prices that has seen crude move by more than US$2 on three occasions, the market continues to send mixed signals. On the one hand, there has been a rally in refined fuels, particularly in the U.S. where gasoline's premium over crude hit an 11-month high. On the other, key timespreads for US crude and the Brent benchmark are now in a bearish contango structure, an indication of oversupply.
