Crude oil's next move hinges on key support levels holding, as a rise above 79.00 could trigger a bullish signal and extend the rally.
Charles Gave of Gavekal Research says the stock market is priced as if oil were at $50 a barrel. It's actually at about $78, and could go higher.
The crude oil markets have been a bit positive in the early hours of Thursday, as the markets are focusing on several different things at once. The tensions in the Middle East also seem to be offering a bit of a floor in this market as well.
U.S. crude oil and Brent are still up 1.2% and 2%, respectively, this week as tensions between Iran and Israel remain high. Gaza cease-fire talks are scheduled to take place in Qatar Thursday.
Oil futures were up slightly Thursday morning, attempting to bounce after back-to-back declines as investors eyed the outlook for demand from China and monitored the threat of a direct confrontation between Iran and Israel that could threaten crude flows from the Middle East.
Oil prices rise on U.S. rate cut hopes, but global demand concerns linger, with China's weakening economy adding pressure. Read the full oil outlook analysis.
Oil prices rose on Thursday, recovering some of the previous day's loss, on hopes of potential U.S. interest rate cuts boosting economic activity and fuel demand, though lingering concerns over slower global demand capped gains.
Gasoline inventories decreased by 2.9 million barrels from the previous week.
The oil markets have pulled back a bit in the early hours of Wednesday, as the markets are taking a bit of a breather at this point in time.
A ceasefire deal in Gaza could prevent Iran from attack Israel, President Joe Biden said. But the president said efforts to reach a cease-fire are "getting hard.
Oil futures edged lower early Wednesday as investors awaited official data on U.S. crude and product inventories after data industry data showed declines.
Middle East tensions and falling U.S. oil inventories lift crude prices, with inflation data looming.