Not satisfied with staging the largest one-day percentage rally since the global financial crisis, crude oil is surging higher yet again on the back of improved investor sentiment.
As the 5-minute tick chart below reveals, the renewed surge occurred upon the resumption of trade in Chinese markets.
A lower USD/CNY fixing from the PBOC – 6.3986 compared to yesterday’s close of 6.4053, something that has weighed on the US dollar – appears to have been the catalyst for the latest leg higher in crude.
Chinese stocks are also helping to boost sentiment, trading up by around 1%.
Front-month crude futures are up 74 cents, or 1.74%, at $43.34 a barrel.