Could the oil upswing be on its way? Prices rallied more than $2 on Tuesday thanks to industry talk and U.S. data indicating a drop in supply. Nonetheless investors are still treading carefully.
Global benchmark Brent crude rallied for a third straight day Tuesday, closing above $50 a barrel the first time in a month. On Wednesday, Brent was trading at $52.46 a barrel, up 54 cents from the previous session.
The sharp move higher came after the U.S. Energy Information Administration (EIA) said on Tuesday that it expected global oil demand to increase by the most in six years, as supply from countries outside of the Organization of Petroleum-Exporting Countries (OPEC) stalled.
Also helping to buoy the price rise was a report from the American Petroleum Institute which showed an unexpected weekly drop in U.S. crude stockpiles.