After hitting multi-year lows, oil prices have leapt this week. The relief rally was triggered by the prospect of an alliance between Russia, Saudi Arabia and further OPEC countries to cut output. Global benchmark Brent crude futures gained on Friday, drifting 6.5 percent higher so far this week, advancing higher on the hopes of a deal among oil-producing countries to tackle a growing supply glut. 

That said, even if an agreement is reached, the incentives to stray from the agreement are very high. However, the possibility of a short-term supply cut would be sufficient to provide oil prices with a tailwind. Also, economic data in the upcoming week should reduce the concerns of the industrial countries at least, about a slump in demand.

Moreover, the weekly data from the US Department of Energy should gradually show signs of slowing US production and the "forced" reaction of supply on the back of low prices should become more and more visible. For now we see further upside for oil in the near-term.