Oil prices have been rising recently, up 20% in the last trading day of this week alone, and some analysts doubt whether the rise is reasonable before seeing the results of production reduction and real demand growth.
As oil producers cut production, investors bet that as the U.S. economy reopens, U.S. consumers will help the oil industry out of the demand crisis, and oil prices are rebounding.
Oil has been boosted by production cuts, which analysts say could help rebalance the market. OPEC and oil producers, including Russia, agreed to cut 9.7 million barrels of oil a day, an agreement that came into effect on Friday. Norway and other oil producing countries also agreed to cut production