Oil continues the rally

Oil continues to rebound as producers commit to supply curbs. Thanks to this prices of oil rose above $50 for the first time since February last year before the pandemic started. There are few reason for this oil rebound, first is vaccine which help us to see end of lockdowns, however main reason is supply cut by OPEC and its partners, mainly Russia which was supposed to increase production next month to 500,000 barrels a day, but after pressure from Saudi Arabia which cut their production as well they decided to keep production low as well. Previously when OPEC cut down the prices, there were US shale producers who increased their supply, however with pandemic still going even shale oil producers are in no rush in increase production as its much more expensive for them to dig the oil so they can't have price bellow $40, so this is a good news and we can see oil going up for weeks ahead. (Eaton, Wall Street Journal)

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