Oil prices are recovering from its record lows, as they post their biggest daily growth in six years. Better economic growth data from the US and easing of tensions over the China economy were the main reasons behind the turn around.
Oil futures gained more than 10% in New York on 27 August, as US gross domestic product (GDP) increased at a 3.7% annualised rate in the second quarter, above economists' estimates. That was WTI crude's biggest one-day percentage growth since March 2009. The rally seems to have sustained on 28 April, as the contracts are trading up 0.87% at $42.93 (£27.77, €38) per barrel as at 5.04am GMT.
Meanwhile, Brent crude is set to post its first weekly gain in two weeks. After it gained $4.42 to $47.56 per barrel in the previous trading session, the contracts were trading up 0.50% at $47.80. Brent crude climbed 4.9% this week.
"A short covering rally, led by crude oil pushed commodities higher across the board. Better than expected U.S. GDP numbers was the main spark, although the force majeure on BP's exports from Nigeria extended the gains," economists at ANZ bank said in a research note.
Oil prices have fallen to a fresh 6.5-year low on 24 August, amid continued worries of high global oil supply while investors expect the demand from China to remain weak due to its growth slowdown. Oil prices had been falling for eight consecutive weeks because of ample supplies of crude, while global economic growth is slowing down, impacting demand. Crude prices have declined about 60% since August 2014.