The crude oil price gained about 3 percent overnight, but the varieties are above $100 per barrel because China pledges to increase support for the economy. The People's Bank of China (PBOC) gave a statement yesterday, April 26, and that has been a supportive factor for commodities across the board.
So even if US Fed hikes interest rates higher, even as the markets are still worried about the COVID-19 cases in China, the statement about stimulus from China has been supportive.
Apart from this, Russia said that it will halt gas deliveries to Poland and Bulgaria today and that’s yet another reason that the gas prices rebounded by 17 percent overnight.
The markets also look at good buying continuing in the metal prices, the strength in the US dollar and demand concerns are limiting gains, but it's more about the China stimulus hopes that seem to be supporting the industrial commodities, whether it's energy or industrial metals.
Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.
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