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3 reasons for oil’s crazy bounce

Crude prices back in ‘bull market’ after 20% rebound

You can’t beat oil futures for excitement. After suffering a monumental second-half 2014 beatdown that extended into the new year, crude has roared back by 20% over the last three trading sessions.

How wild was the rally? Matthew Weller, senior technical analyst at Forex.com, notes that when Nymex West Texas Intermediate (WTI) oil futures CLH5, -3.03% climbed for the first time from $44 to $53 a barrel back in 2004, the rally took nearly three months. And that was a “fairly quick” period for a gain of more than 20%, he said in a note.

This time around, oil futures did the same thing in less than three days, rather than three months.

So what happened? Here are three possible explanations:

http://www.marketwatch.com/story/3-reasons-for-oils-crazy-bo...