Oil jumps 5% to over $28 on Fed steps to support economy - Reuters

Oil jumps 5% to over $28 on Fed steps to support economy - Reuters:

Oil jumped 5% on Tuesday to above $28 a barrel, supported by steps by the U.S. Federal Reserve to bolster the economy and hopes the United States will soon reach a deal on a $2 trillion coronavirus aid package.

The Fed on Monday rolled out an array of programs including backing for the first time corporate bond purchases. U.S. Treasury Secretary Steven Mnuchin voiced confidence that a deal on the aid package would be reached soon.

Brent crude LCOc1 was up by $1.44 a barrel, or 5.3%, to $28.47 by 0926 GMT. The global benchmark fell to $24.52 on Wednesday, its lowest level since 2003. 

U.S. West Texas Intermediate CLc1 gained $1.26, or 5.4%, to $24.62.

“Oil is clawing its way higher, mainly on the back of the weaker dollar that stemmed from the Fed’s unprecedented measures,” said Edward Moya, senior market analyst at broker OANDA.