Caution urged as oil prices rebound after near six year lows

Brent was trading roughly 50% below its June 2014 peak as Petroleum Economist went to press.

Oil prices rebounded from near six-year lows in January as the markets rallied on news of a steep drop in the US rig count and relatively positive US economic data. Brent was trading at $60.24 a barrel (/b) – roughly 50% below its June 2014 peak - and WTI at $50.67/b as Petroleum Economist went to press. Oil prices began falling in June 2014 as traders reacted to a growing supply glut, but prices have picked up since mid-January, with Brent gaining almost $20/b to touch $63/b by mid-February as long-standing short positions were closed in reaction to the decline in the US rig count. Traders were also starting to see light at the end of the tunnel following a spate of announcements from oil c