<p>Oil prices rallied Friday as massive output cuts began to kick in and top producers said they would turn the taps lower, while there were also hopes for a pick-up in demand as economies slowly reopen.</p>.<p>After a diabolical month for the commodity in which the May WTI contract fell to a mind-boggling minus $40, investors were a little more upbeat about the outlook, though analysts warned the market was not yet out of the woods.</p>.<p>In early trade, US benchmark WTI for June was up almost five percent at $19.75, having piled on 25 percent in each of the previous two days.</p>.<p>Brent for July delivery gained 2.4 percent to $27.12 on its first day of trading, with the June contract closing without any of the flurry of selling suffered by US oil two weeks ago.</p>.<p>The gains this week are in line with strong advances across equity markets, which have been fuelled by signs of a slowing of coronavirus infections and deaths in some of the worst-hit nations.</p>.<p>The uptick has also been sustained by governments beginning to ease lockdown restrictions that have hammered oil demand for months.</p>.<p>News that US stockpiles had risen slower than expected last week, as well as a surprise drop in gasoline reserves also provided support.</p>.<p>"Demand has most likely troughed with several large economies now considering 'exit strategies' or 'new normal' and lifting draconian lockdown restrictions," said AxiCorp analyst Stephen Innes.</p>.<p>Optimism has also been boosted by news of successful early testing of a possible virus treatment in the United States.</p>.<p>Output cuts of 10 million barrels a day agreed by OPEC and other top producers will start Friday, though some countries had already started earlier this week.</p>.<p>Norway, which was not part of that deal, said it would slash 250,000 barrels from its daily output in June, while ConocoPhillips said it would chop 400,000 barrels a day.</p>.<p>However, with US storage facilities near bursting and demand still pummelled, Citigroup warned of further volatility before the oil market enjoys some sort of stability.</p>
<p>Oil prices rallied Friday as massive output cuts began to kick in and top producers said they would turn the taps lower, while there were also hopes for a pick-up in demand as economies slowly reopen.</p>.<p>After a diabolical month for the commodity in which the May WTI contract fell to a mind-boggling minus $40, investors were a little more upbeat about the outlook, though analysts warned the market was not yet out of the woods.</p>.<p>In early trade, US benchmark WTI for June was up almost five percent at $19.75, having piled on 25 percent in each of the previous two days.</p>.<p>Brent for July delivery gained 2.4 percent to $27.12 on its first day of trading, with the June contract closing without any of the flurry of selling suffered by US oil two weeks ago.</p>.<p>The gains this week are in line with strong advances across equity markets, which have been fuelled by signs of a slowing of coronavirus infections and deaths in some of the worst-hit nations.</p>.<p>The uptick has also been sustained by governments beginning to ease lockdown restrictions that have hammered oil demand for months.</p>.<p>News that US stockpiles had risen slower than expected last week, as well as a surprise drop in gasoline reserves also provided support.</p>.<p>"Demand has most likely troughed with several large economies now considering 'exit strategies' or 'new normal' and lifting draconian lockdown restrictions," said AxiCorp analyst Stephen Innes.</p>.<p>Optimism has also been boosted by news of successful early testing of a possible virus treatment in the United States.</p>.<p>Output cuts of 10 million barrels a day agreed by OPEC and other top producers will start Friday, though some countries had already started earlier this week.</p>.<p>Norway, which was not part of that deal, said it would slash 250,000 barrels from its daily output in June, while ConocoPhillips said it would chop 400,000 barrels a day.</p>.<p>However, with US storage facilities near bursting and demand still pummelled, Citigroup warned of further volatility before the oil market enjoys some sort of stability.</p>