Oil prices rise significantly, probably due to short covering

Oil prices gained by as much as 4% yesterday and are continuing their recovery this morning after a brief interruption. Brent has risen as a result to $51 per barrel, while WTI costs more than $45 per barrel. Besides a weaker US dollar, it was a broad-based increase in commodity prices yesterday which lent buoyancy to the oil prices. 

Short positions are evidently covered following the massive price falls in the preceding weeks. Prices are shedding some of their gains again this morning because there is still no solid basis for any prolonged price recovery given that the huge oversupply remains firmly in place, says Commerzbank.