Oil prices surged again today, a day after recording their biggest gain in more than six years.
The Associated Press reports U.S. crude rose 6.3% to finish at $45.22 per barrel after climbing 10.3% on Thursday. That was the biggest one-day gain for U.S. oil since March 2009. The price of U.S. crude is still down 15% in 2015.
Brent crude, a benchmark for international oils imported by U.S. refineries, rose 5.2% to $50.05 a barrel. Brent also rose 10.3% Thursday.
U.S. oil had fallen to a 6 1/2-year low on Monday because of a global supply glut and worries about the health of China’s economy. Thursday and today’s gains ease some concerns about the economic impact of falling oil prices on oil-producing regions and the economy at large.
The Wall Street Journal reports analysts attributed most of the rally today to traders closing out bets made after the U.S. benchmark had slumped below $40 a barrel earlier this week for the first time since 2009.
A number of market watchers say prices could start falling again soon, because the global glut of oil that sent prices plunging last year is likely to persist at least through the end of 2015. Production remains near multiyear highs in the U.S., Saudi Arabia and elsewhere.
“There is no reason that oil isn’t going to go down from here,” says Mark Waggoner, president of brokerage Excel Futures, noting that OPEC is producing at high levels and refineries will buy less crude in the coming months as they perform seasonal maintenance.
