MTECHTIPS:-Crude oil futures - weekly outlook: January 25 - 29

MTECHTIPS:-Crude oil futures - weekly outlook: January 25 - 29

 Oil futures soared 9% on Friday to move further away from the lowest level since 2003 amid heavy short covering as equity markets rallied throughout the world on the back of expectations for fresh central bank stimulus. On the New York Mercantile Exchange, crude oil for delivery in March jumped $2.66, or 9.01%, to end the week at $32.19 a barrel, the most since January 11. On Thursday, prices advanced $1.18, or 4.16%, as traders closed out bets on lower prices ahead of an upcoming snowstorm in the U.S. and amid hopes that major central banks will announce fresh stimulus measures. For the week, New York-traded oil futures rose $2.99, or 9.42%, the first weekly gain in a month. The U.S. benchmark is still down nearly 13% this month amid ongoing concerns over a global supply glut. U.S. oil futures plunged below $27 on Wednesday for the first time since September 2003, as investors worried that a huge oversupply in crude was coinciding with an economic slowdown, especially in China. Elsewhere, on the ICE Futures Exchange in London, Brent oil for March delivery surged $2.93, or 10.02%, on Friday to close the week at $32.18 a barrel. A day earlier, prices climbed $1.37, or 4.91%. On the week, London-traded Brent futures gained $3.45, or 11.2%, snapping a three week losing streak. Brent prices are still down almost 14% since the start of the year. Brent sank to $27.10 on Wednesday, a level not seen since October 2003.

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