Oil rallies through the $50 handle on renewed hopes

Oil has rallied onto the $50 handle once again this week  to a high of $50.25 on the renewed hopes for a crude output deal among major producers. Albeit delayed, there was also the unexpected weekly decline in U.S crude inventories that has also contributed to a rebound in prices after a three-session decline.

It was reported earlier that the energy ministers from Persian Gulf members of the Organization of the Petroleum Exporting Countries, including Saudi Arabia, have told Russia that they are prepared to cut 4% from their peak oil output. We are waiting for more details and a plan from OPEC that has proposed to curb production to between 32.5 million and 33 million barrels a day.