It would take a move up through $35, near the December low, to indicate a more significant corrective rally is under way. That’s the area of immediate resistance but it’s a long way from where we are now.
Energy shares rallied with oil prices on Friday, leading gains on the MSCI AC Asia Pacific Index. Australian oil and gas producer Santos Ltd. jumped as much as 12.7 percent while PetroChina Co. added 7.9 percent in Hong Kong.West Texas Intermediate for March delivery gained as much as $1.51, or 5.1 percent, to $31.04 a barrel on the New York Mercantile Exchange and was at $30.63 . in Singapore. Front-month futures have surged 15 percent since the February contract expired on Wednesday, the most since August. The volume of all futures traded was more than double the 100-day average.
Oil should hit a bottom within one to three months, according to ”Citigroup” is among forecasters predicting a gain in the second half, projecting an average Brent price of $41 a barrel in the third quarter and $52 in the last three months. This compares with a mean of about $47 for the fourth quarter.