The Federal Reserve (Fed) announced last Monday (23), a number of programs including for the first time support for the purchase of corporate bonds. On Tuesday (24), oil prices advanced supported by Fed measures to boost the economy and expectations that the United States should soon reach an agreement on a $2 trillion aid package due to coronavirus.
Brent crude rose $0.86, or 3.18 percent, to $27.89 per barrel at 9:52 a.m. PDT. U.S. crude advanced $0.63, or 2.7 percent, to $23.99 per barrel. Brent, the global benchmark, fell to $24.52 on Wednesday, the lowest level since 2003.
"This is giving a significant boost to oil prices, at least in the short term," Commerzbank analyst Eugen Weinberg told Reuters. "However, it is highly questionable how long the good mood will follow in the oil market," he added.