WTI futures traded around $70.30 per barrel, as of 9 a.m. ET. That’s an increase of 0.90% in the last 24 hours.

The crude oil markets are in the midst of trying to find enough support, as the market will continue to see these low levels as a situation where the market just “got too cheap.”

U.S. and international crude oil futures skidded to their lowest levels in more than a year after the influential oil producing group cut its 2024 outlook, citing weakness in Chinese demand.

The Brent/WTI spread has historically ranged between $4/bbl and $8/bbl, but it can expand or contract based on factors related to U.S. and international supply and demand conditions. For example, the Brent/WTI spread hit nearly $14/bbl in April 2011 when protests sparked market fears of significant oil supply disruptions in the Middle East.

The crude oil market continues to bounce a bit on each successive drop, as the demand for oil seems to be a factor, but the fact that the market has sold off so much could also bring in the value hunters at these low levels.

Oil prices rose more than 1% on Thursday after a large interest rate cut from the U.S. Federal Reserve, helping Brent to recover from below $69 last week - its lowest all year - to above $74. Brent crude futures were up 90 cents,

Crude oil futures gained on Thursday due to increased spot demand. Prices rose Rs 66 to Rs 5,906 per barrel on the Multi Commodity Exchange. Read more.