Crude Oil futures were trading higher by $2.81 at $41.41 in Thursday’s session. The buy-all mentality in Thursday’s markets has spilled over into the oil complex, as well. In addition, the intervention by the Chinese government has boosted their markets, which may result in increased demand for oil if their economy can stage a rebound.
Crude oil futures are three days removed from making a multi-year low at $37.75. Over the next day, the contract put in two higher lows Tuesday ($38.16) and Wednesday ($38.52) and ended Wednesday’s session just off the low at $38.60.
After a higher open, it crossed the psychological $40 level the rally gained momentum as shorts began to cover into a rising instead of falling market.
So far, it has found resistance at $41.64, which is just shy of its August 20 high ($41.81). Since reaching that level, it has been finding intra-day support at the $41.20 level.