Crude Oil Surges Amid Optimism About Chinese Demand

(RTTNews) - Following the pullback seen in the previous session, the price of crude oil showed a strong move back to the upside during trading on Tuesday.

Crude for April delivery surged $1.37 or 1.8 percent to $77.05 a barrel after falling $0.64 or 0.8 percent to $75.68 a barrel on Monday.

The rebound by the price of crude oil was partly attributed to optimism about increased demand from China.

"China's economic recovery will drive its demand for commodities higher, with oil positioned to benefit the most," JPMorgan analysts said in a note not clients.

Crude oil may also have benefitted from short-covering on the final day of a disappointing month for the commodity.

On Wednesday, the Energy Information Administration is scheduled to release its report on oil inventories in the week ended February 24th.

Crude oil inventories are expected to creep up by 0.4 million barrels after jumping by 7.6 million barrels in the previous week.