Oil Rises in Biggest Rally Since August Amid Volatility Surge - Bloomberg Business

Oil Rises in Biggest Rally Since August Amid Volatility Surge - Bloomberg Business:

"Oil rallied in its biggest two-day advance since August after a slump to a 12-year low prompted some investors to buy back record bearish bets.
Front-month futures have jumped more than 15 percent after sliding to the lowest since 2003 on Wednesday. Earlier this month speculators’ amassed the biggest ever short position in U.S. crude amid concern that turmoil in China’s markets will curb fuel demand while an increase in exports from Iran will exacerbate a global glut. Oil may be the “trade of the year,” if it can weather the surge in the Middle East producer’s shipments, according to Citigroup Inc.
“After large directional movements like those we’ve seen over recent weeks there tends to be a corrective move in the opposite direction,” Ric Spooner, a chief analyst at CMC Markets in Sydney, said by phone. “It does look like the next couple of months could be some sort of a crunch time for oil, particularly with Iran coming back into the market and disappointing demand growth.”"



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