Oil prices plunged to a 6 and a half year low earlier this week and on Thursday surged upward nearly 10%. Thursday was the “biggest one-day rally since 2009 as recovering equity markets and news of diminished crude supplies set off a short-covering surge by bearish traders.” Prices closed at $47.21 a barrel. Factors adding to the price increase were predictions that Chinese measures to stimulate their economy would work, Shell declared a force majeure in Nigeria, an upward revision on 2nd quarter U.S. economic growth, and data on additional drawdown of Cushing crude.
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