Brent crude oil went up by almost 10% on Thursday, putting it on track for its best day on record, taking back more than half of the losses from Wednesday’s plunge.
U.S. West Texas Intermediate crude rose 21.4%, or $4.36, to trade at $24.73 per barrel. Brent Crude Oil jumped 9.5%, or $2.37, to trade at $27.29 per barrel.
The sentiment boosted oil prices, in lieu that the coronavirus outbreak may finally be under control in China, where it originated, in a tribute to the success of communist authorities in tackling the pandemic.
China reported no new local infections on Thursday for the first time since the coronavirus struck in December, paralyzing business in the world’s largest importer of oil.
The virus has killed 3245 people in China so far, making up over a third of the global toll.
In the latest move by a central bank to try to halt the spiraling economic and financial crisis sparked by the coronavirus epidemic, the European Central Bank kicked off a 750 billion euro ($820 billion) emergency bond purchase scheme after an unscheduled meeting on Wednesday.
The higher supply is increasingly taking its toll on the oil market’s structure. Brent’s six-month time spread is currently at its most bearish since 2009, indicating a big glut. As a result, traders are eyeing up the lucrative opportunities from storing oil on tankers and hoping to sell it at a profit later.