After falling into negative territory for the first time in history amid record trading volumes, U.S. crude futures rose 20 percent as contracts for May delivery expired and the June contract became the front month. West Texas Intermediate CLc1 was up $2.05, or 18 percent at $13.62 a barrel by 12.34am GMT.
FTSE 100 LIVE: Oil prices are recovering ground after market turmoil (Image: GETTY)
Brent crude LCOc1, which settled down 24 percent in the previous session, was up 4 cents at $19.37 a barrel after rising more than $1 earlier.
“Global markets are struggling mightily with a temporary but overwhelming demand drop due to the coronavirus pandemic,” said Stephen Innes, global markets strategist at AxiCorp.
He also warned that prices could tumble further as storage fills up.
Oil prices have slumped more than 70 percent this year as the coronavirus has slashed demand for everything from jet fuel to gasoline, while storage tanks around the globe are filling rapidly.
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6.28am update: Global CEOs see U-shaped recession due to coronavirus
Global business leaders are preparing for a drawn-out U-shaped recession due to the impact of coronavirus and many fear their companies won’t survive the pandemic, a survey of thousands of chief executives showed on Wednesday.
The pandemic sweeping the world has killed nearly 180,000 people, routed financial markets and could trigger the worst economic meltdown since the 1930s Great Depression.
Around 60 percent of chief executives are preparing for a U-shaped recovery – a long period between recession and an upturn – compared with 22 percent who predict a double-dip recession, according to an April 15-19 poll of 3,534 chief executives from 109 countries conducted by YPO, a business leadership network.
The survey found that 11 percent of chief executives see coronavirus as a risk to the survival of their firm, while a further 40 percent say the pandemic poses a severe threat.
“We have not seen a crisis like this for over a hundred years, and some household names will not survive,” said Glenn Keys, Executive Chairman of Aspen Medical, a Sydney-based health services firm and YPO member.