Oil extends gains, WTI rises 3%

Oil prices extended gains in Europe, with both benchmarks trading at least 3% higher on the day as traders cheered Fed’s bullish comments on economy and strong German data.

At the time of writing, WTI futures were up 3.5% at $38.57/barrel. Brent futures traded 3.14% higher at $40.65/barrel.

Bullish tone gathered pace in Asia after Fed said US economy was on a path of more economic growth. Meanwhile, ratings agency Fitch published a bullish German economic growth forecasts. Both developments are seen supporting oil/fuel demand.

Furthermore, data released in Germany also showed exports in February rose at their fastest pace in 5 months. Ahead in the day, the momentum remains at the mercy of the US weekly oil rig count data.