The price of oil hit a 3-month high ahead of the OPEC meeting
Predictions that OPEC and allies will extend record production cuts until July have affected the price of crude oil. Brent crude futures, the global benchmark, rose above $41 a barrel for the first time since early March.
The OPEC alliance will meet on Saturday to discuss extending the production cut by one month.
OPEC members and their allies, including Russia and Mexico, have previously pledged to cut production by 9.7 million barrels a day in May and June to help raise oil prices as demand starts to pick up.
Bjornar Tonhaugen, director of oil markets at Rystad Energy, noted that oil producers still have to pursue a tough policy. They will probably still want to get rid of the oil that is in storage to push the price up to a more sustainable level.
"Even if demand exceeds supply for a while, it doesn't mean we have a problem."
Tonhaugen said on Friday.
Investors are now focused mainly on what will happen in August. Craig Erlam, a senior market analyst at Oanda, believes that production could start slowly increasing now.
"People are starting to leave their homes, go back to work, and national borders are reopening. Record cuts in production will not have to last long to keep prices down," he said.