Crude futures mixed in Asia as sentiment remains volatile after overnight surge

Singapore — 0210 GMT: Crude oil futures were mixed in mid-morning trade in Asia Friday after prices surged overnight on US President Donald Trump announcing he would support the US oil industry, while broader sentiment remained volatile.

At 10:10 am Singapore time (0210 GMT), ICE Brent May crude futures were down 8 cents/b (0.28%) from Thursday's settle at $28.39/b, while the NYMEX April light sweet crude contract was 37 cents/b (1.47%) higher at $25.59/b.

The ICE Brent May contract had settled up $3.59/b day on day at $28.47/b and NYMEX April WTI $4.85/b higher at $25.22/b Thursday after Trump suggested he would support the US oil industry by stepping into the ongoing Saudi Arabia-Russia oil price war "at the appropriate time".

"The market did find some relief from President Donald Trump's suggestion on getting involved with the global price war," IG market strategist Pan Jingyi said Friday. However, it remains to be seen just what a US-outlined "middle ground" would mean against the commitment of extra supply from Saudi Arabia, Pan added.

Oil futures staged a strong rebound Thursday, with front-month NYMEX WTI surging almost 24% during the session to post the biggest one-day percentage gain since the launch of the contract in April 1983.

"This finds prices breaking away from the short-term downtrend on the four-hour chart, with prices perhaps having found some support on this optimism ahead of the $25/b level," Pan said.

The US Energy Department Thursday formally requested to buy up to 30 million barrels of sweet and sour crudes from US producers for the Strategic Petroleum Reserve, adding further support to US oil prices.

"Oil prices have endured very high volatility in the past two weeks and are showing little sign of stabilizing at present," OCBC analysts said in a note Friday.

Sentiment remains volatile as the coronavirus spread showed no signs of abating globally, with Italy's death toll from the pandemic overtaking China's on Thursday, according to media reports.